USING A CREDIT CARD WISELY
Below are some common tips that will help make you
an intelligent credit card user, helping you avoid
damaging your credit rating. If you have any
questions, please contact
Don't buy on impulse!
One of the most important rules to follow is to never
make purchases that are merely done on impulse. Any sort
of impulse shopping spree is the most damaging use of a
Stay away from extra programs and/or services being
offered to you by your credit company that cost money!
Credit card issuers offer all types of extra products
and services that are usually not anywhere near worth
the money they cost. For example, credit card insurance.
Credit card insurance is an un-needed expense that is
supposed to protect you if your credit card is used
illegally. However, by law you are only liable for at
most $50 worth of bogus purchases made with your card.
Another type of service offered by credit card companies
that is not worth its cost is credit card disability
insurance. Getting your credit card issuer to activate
your insurance in the event you become disabled is not
going to be easy. Also, credit card disability insurance
does not mean you don't have to pay your credit card
Don't go over your limit!
Exceeding your credit line will result in heft fees.
Pre-paid gift cards are a bad deal!
The fees associated with prepaid gift cards mean you
end up paying more than what they are worth. Gift cards
also expire very fast, meaning it is very common for
them to never even get used.
If you are looking to give a gift, give cash, write a
check or obtain a gift card directly from a retailer.
Retail gift cards never expire and don't have any hidden
fees associated with them.
Don't buy presents with your credit card!
Always use cash or something of the equivalent when
buying gifts. It makes no sense to borrow money to buy
something that you are going to be giving away.
Try and avoid using your credit card while abroad!
Most of the major credit card companies charge
between a 1-3% fee for credit card
purchases that are not made in the United States.
These fees can add up very quickly on a long vacation. A
good idea would be to use a debit card or traveler's
checks while on vacation.
One of the most important things you can when using a
credit card is to
pay your bill on time, every month! Utilizing
online bill payment options is a good idea.
If you have excessive debt already, or are concerned
that you will not be able to use your plastic
stop using credit cards immediately. The benefits of
credit cards are inferior to the damage that can result
of not being responsible. Poor credit card use will
**We also feature an entire section related to
credit cards and identity theft.
Credit Card Debit & Mortgages