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Credit cards are useful, and they can be of benefit to a person, however one has to learn proper credit card management and be careful in handling such as it requires discipline. When used carelessly, you can run up huge bills on unnecessary expenses, in an instant. However, properly managed, credit cards can mean good credit scores and rewards. Here are helpful ideas on how to responsibly handle these cards, so that you can make sure that you can enjoy the benefits and not regret your decision to have them.
When bad times come, which in life are inevitable, a credit card holder should contact the credit card company and not just leave the account until collection time comes, as this is bad for one’s credit standing. Most companies are accommodating to their clients, and they help the card holder find an easy plan to pay the account in smaller, affordable amounts, provided one shows the company that he is sincere and has the intention to pay. It’s never advisable to play the hide-and-seek game with credit card companies.
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A credit card holder can enjoy free credit reports yearly from three separate US bureaus which are very helpful to show one’s credit status. These are the TransUnion, Equifax, Experian Scores. One has to be sure all three of them has a passing score, so that one’s credit cards are in good standing, and the holder can still be looked upon as a dependable, reliable creditor.
Interest earned by the company from the credit card transactions should be looked into. One may consider transferring the balance of his credit card from a company charging high interest to another of lesser interest charges. It’s really better to compare interest charges among credit card companies. In fact many of these companies offer special rates, including % interest, when one transfers his balance to their credit card. Computing and comparing patiently the interest charges of the different credit card companies will save a credit card holder a lot of heartaches, and money as well.
Monitoring one’s credit balance is one good habit; yes it’s good to make this a habit. An important rule is: one should never exceed his credit limit. One should be always aware of it. Many credit card holders end up in woe as they are not careful with their card usage; they go beyond their credit limit and incur big credit card charges/fees. One should be responsible to know how much credit he has left.
Wisdom and self-discipline should be practiced when using one’s credit cards. Don’t purchase everything you want, limit yourself to what is financially manageable. Check your finances and make sure that you can pay what you charge on your credit card prior to doing any transactions. Make it a rule to pay off your balance every month so you will be on top of your finances.
If you find it difficult to control your overspending on your credit card, there are several ways to save it only for emergencies. One of the most effective ways to do this is to leave the card with a trusted friend. They will only give you the card if you can convince them you really need it.
Having credit cards carries a lot of risk and stress, especially if one cannot resist but succumbs to the temptation to just carelessly buy even what is unnecessary, to the point of regretting it later. However, if one knows how to be responsible, with the right habits, proper behavior and self-discipline, credit cards can be tools towards a better life.