Tuesday, June 2, 2009

Credit Card Usage and Safety Tips

It is really nice to have credit cards. In case you have something that you really want to buy or sometimes when emergency cases occur, credit cards can really give us some relief.

Although, credit cards are often misused and financial planners end up in trouble paying the balance and the charges putting them in the deep well of debt.

That is why I posted the following tips, to help you out in your credit card usage.

Keep in mind that credit cards are only a short term solution, and should never be used to provide finance in the long term. Just keeping that tip alone can save you in financial debt in the future.

Here are the tips I want you to take note of.

1. Never use your credit card as a way of financing purchases that you are not certain you will be able to afford in the near future. If you have a job for example that is ending in 2 months, then ensure that your credit card balance will be zero for that time. This will eliminate the risk of you not being able to keep up repayments, should your contract not be renewed or you not being able to get a new job.

2. Always check your statements in detail, and try and do this as often as possible. The longer you wait, the less likely you will be to remember transactions, and the less time you will have to do something about it.

3. Calculate the total amount of expenses you are likely to incur over the course of a year, by applying formula within a providers proposal, to your likely repayment and borrowing requirements. Now work out what is the cheapest.

4. Protect your account details at all cost, and ensure that you are careful about the companies that you contract with. If in doubt, pay with cash or go elsewhere.

5. Only carry the credit cards with you that you intend to use. If you carry too many then you are just asking for trouble, because it will take you longer to notice when they go missing.

6. Hold onto any receipts and keep a note of all credit card transactions that you have been party to. If you are ever in doubt about a transaction contact your credit card provider immediately.

7. Remember that you can always churn. Always keep abreast with pricing in the market, and don't be scared to move provider to attain better prices, this can often be the best way to ensure that you save the most money.

Do you have anything to add or to say? Just leave it on the comments section. Also, feel free to read my post regarding Free Credit Report Without Using Credit Card.


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