Using a Credit Card.

There is much truth in the advice that credit cards should not be used as a substitute for having no money. Every time you use a credit card you should be aware of this concept. And you would do good to remember the following advice too . . .

Do’s.

You should always plan ahead for purchases that you need and want, and distinguish between the two. You need the essentials, and you want everything else. The ability of making a distinction can help you plan more wisely.

If you get caught up in financial difficulties, it’s always good to talk to the card issuer who might re-schedule your payments. If you simply default, that only helps to build up an unfavorable credit history and you might find yourself being denied credit next time.

Unless it is an emergency, staying within your credit limits will help you a great deal. If you must spend over the limit, ensure you are within the manageable levels, say within 30 percent. It is usually a good idea to inform the card issuer beforehand if you are likely to go over your limit.

And if your mails are packed with more favorite deals than you currently are enjoying, you may approach your issuer for a better deal. They want to retain you as their customer, so they will listen.

Dont’s

Do not use your credit card to make house-hold purchases. It’s expensive in the long run.

Do not just pay the minimal amount. You will end up paying exorbitant interest. The quicker you clear the debt the better.

Do not use the credit card to purchase things you can’t afford.