Getting a credit card is a big responsibility

Connie Gutchrif Owning a credit card can be quite an advantage. Whether
making online purchases, booking an air ticket or a hotel
room on the phone or simply being in need of some
emergency cash, having a credit card can be a big help.
However, getting a credit card is also a huge
responsibility and if you don't keep an eye on your
spending habits, credit cards can create some serious
problems. Here is an excellent list of tips on proper
credit card use and if you follow these, you will likely
stay out of trouble and your credit card will be a
blessing instead of a curse:

1. When you make a purchase with the credit card, it
is akin to taking a loan from your bank. What you
have borrowed has to be returned - so do not borrow beyond
your capacity to pay it back.

2. Always be aware of your outstanding credit card
balances. This will help you determine whether you can
make additional purchases. Even small purchases can really
add up to big balances and substantial interest charges.

3.Any credit card receipts should be kept until you can
compare them to your monthly statement. If you find any
purchases you did not make, or higher charges than those on
the receipt, contact your credit card company immediately.

4. don't give your credit card to anyone, not even
friends and family. Its not that you cant trust these
folks but it would be really difficult to track purchases
if you are not the only one making them.

5. don't ever borrow more than your ability to pay it
back. If you do and consequently arent able to pay it
back, it can hurt your future ability to obtain other
forms of loans such as home mortgages, car loans etc.

6. Pay your credit card bills on time or even before
they are due. Doing so will not only help improve your
credit scores, but also help avoid additional costs
associated with late payment charges and accrued interest.

7. Try to have your credit card bills paid in full
every month. To ensure this, budget your credit card
purchases on a monthly basis and then don't allow your
purchases to exceed that amount.

8.Keep your credit cards for new purchasing. don't pay one
credit card bill with a different credit card. This will
inevitably lead to more charging and higher balances.

Connie Gutchrif is the President of FN
Credit - An excellent
resource for information on credit. To learn more, be sure
to visit:
http://www.fncredit.com
Getting a credit card is a big responsibility

Owning a credit card can be quite an advantage. Whether
making online purchases, booking an air ticket or a hotel
room on the phone or simply being in need of some
emergency cash, having a credit card can be a big help.
However, getting a credit card is also a huge
responsibility and if you don't keep an eye on your
spending habits, credit cards can create some serious
problems. Here is an excellent list of tips on proper
credit card use and if you follow these, you will likely
stay out of trouble and your credit card will be a
blessing instead of a curse:

1. When you make a purchase with the credit card, it
is akin to taking a loan from your bank. What you
have borrowed has to be returned - so do not borrow beyond
your capacity to pay it back.

2. Always be aware of your outstanding credit card
balances. This will help you determine whether you can
make additional purchases. Even small purchases can really
add up to big balances and substantial interest charges.

3.Any credit card receipts should be kept until you can
compare them to your monthly statement. If you find any
purchases you did not make, or higher charges than those on
the receipt, contact your credit card company immediately.

4. don't give your credit card to anyone, not even
friends and family. Its not that you cant trust these
folks but it would be really difficult to track purchases
if you are not the only one making them.

5. don't ever borrow more than your ability to pay it
back. If you do and consequently arent able to pay it
back, it can hurt your future ability to obtain other
forms of loans such as home mortgages, car loans etc.

6. Pay your credit card bills on time or even before
they are due. Doing so will not only help improve your
credit scores, but also help avoid additional costs
associated with late payment charges and accrued interest.

7. Try to have your credit card bills paid in full
every month. To ensure this, budget your credit card
purchases on a monthly basis and then don't allow your
purchases to exceed that amount.

8.Keep your credit cards for new purchasing. don't pay one
credit card bill with a different credit card. This will
inevitably lead to more charging and higher balances.

About the Author

Connie Gutchrif is the President of FN
Credit - An excellent
resource for information on credit. To learn more, be sure
to visit:
http://www.fncredit.com