Although credit cards can cause a lot of headaches and problems (not to mention debt!), they can also be a wonderful tool. The key is to make sure that you are in control, of the credit card, and that it is not in control of you! These tips will help you stay a responsible and happy credit card user.

1. Pay off your balance: If at all possible, pay off your entire credit card balance every month. This can’t be overstated! Unless you absolutely do not have the money, pay off the balance. It is never a good idea to only pay the minimum. Remember, the credit card companies are the ones who set the minimum payment, and they do it to their advantage, not yours. Pay off the balance!
2. Keep track of your credit cards: Don’t lend them out, don’t give duplicates to your children, don’t let your friend borrow your credit cards.
3. Don’t use one card to pay off another: Except in very specific situations, it’s not a good idea to juggle your debt by switching it from one credit card to another. This will just get you deeper in debt.
4. Keep track of your balance: Keeping the receipts for your credit card purchases will help you to keep track of how much you have charged. If you never charge more than you are able to pay off, you will not end up as a slave to your debt.
5. Avoid late fees: Make sure that you always pay your bill before it is due. Leave time for the payment to get to the office and be processed. In fact, you should try to pay your bill as soon as you receive it. This way, you can’t lose it or forget to pay it. Late fees not only add up quickly, but a late payment can also cause your APR to rise.
6. Don’t max out cards: Experts recommend never using more than 75% of your credit limit. That way, you will still be able to use the cards in case of an emergency, and your interest or an unexpected purchase will not put you over your limits, causing more fines.
7. Always read your monthly statements! It is much easier to fix mistakes and false charges right after they happen rather than waiting months and then trying to get to the bottom of it. In dealing with your credit card bills, knowledge is your best weapon.

Credit cards can be extremely useful. You can often get special deals just for using a credit card, earn cashback awards or discounts, and receive protection for lost, stolen, or defective merchandise if you have bought it on a credit card. Just make sure that you, and not the credit card companies, are benefiting from your credit card!

This entry was posted on Saturday, October 6th, 2007 at 6:24 am and is filed under Shopping Tips, Travel Deals. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.