Tips For Using Credit Cards Responsibly
Credit cards can provide a very secure and convenient payment method when used properly. The problem is that many individuals don’t know how to use a credit card properly which can lead to serious financial debt. If you follow some general tips, you can enjoy all the conveniences offered by a credit card without the problems often associated with them.
Keep Track Of All Your Purchases
This may seem like a very obvious statement. However, you may be surprised at how many people continue to make a very significant amount of credit card purchases without keeping track. This can result in problems by the time the monthly statement arrives as the monthly amount can quickly add up. To avoid this, write down all of your credit card purchases as soon as you make them. This way, you will be well prepared by the time you receive your statement.
Review Your Statement Carefully
Many people receive their monthly statement, look down at the total balance and then quickly make a payment. They don’t give the individual charges a second glance. If you don’t check each purchase, you may not notice if any fraudulent purchases were made using your card. The sooner you notice and report any suspicious charges, the easier your credit card company will be able to reverse the charges.
Companies may also enter an incorrect amount for a purchase or double bill you. This is a very common error that occurs when an employee accidentally runs your card through twice for a purchase. They may also start a second transaction to correct a previous error and forget to close the first transaction. If you take the time to notice them as soon as they appear on your statement, these errors can be easily remedied. You can contact the business first. If you don’t receive a successful resolution, you should contact your credit card company so they can help you resolve the problem.
Resist The Temptation To Overspend
Many credit card owners can’t seem to resist the temptation to overspend. They will continue to make purchase upon purchase, without any regard as to how they will actually come up with enough money to pay for them all. Try to limit your credit card spending to what you can actually afford each month. Make sure you will be able to earn enough money by the time your monthly statement arrives to pay off the entire balance. This will help you to keep the cost of a credit card down.
Pay Your Balance Each Month
If you do purchase more with your credit card than you currently have in your account, make sure you have enough to pay off your unpaid balance each month. If you do so, you won’t be charged any additional interest. If you carry a balance, you will be charged unbelievably high rates which can get you into financial debt very quickly. Forget about the minimum payments that your statement indicates. Make sure you have enough to pay your entire balance in full each and every month.