The majority of Americans have at least one credit card in their names with many having 3 or more. Some of these cards are major cards like Mastercard or Visa, while others are retail stores or gas cards. As a user it’s important to educate yourself on all of the various do’s and don’ts before obtaining and using one. If your a parent, it’s your job to educate your children about them too.
The Do’s:
– Do shop around for the “right” credit card for your particular needs. At minimum, you should look at 3 different options before making your final decision and applying for one.
– Do consider the interest rate, annual fee, late payment fees, penalties for paying it off early, etc.
– Do take the time to read all of the fine print and we mean READ everything, word for word before signing up on the dotted line! If there is something you don’t understand, ask questions & get answers!
– Do look for a card that represents your spending habits! If you’re a heavy card user and use the card for all sorts of different purchases, you’ll want to apply for a card that earns you cash back for those type of purchases. If you only plan on using it when you travel (for charging airfare, hotel rooms, rental cars, etc.) look for a rewards program that is geared specifically towards travel. There’s a wide variety of different reward programs available.
– Do take the time to read your monthly statements and report any discrepancies immediately to the company.
The Don’ts:
– Don’t go crazy opening up too many credit card accounts! The more you open & the more you use, the more apt you are to over-extend yourself when it comes time to pay it all back.
– Don’t charge more than your allowable line of credit! By going over the allowable amount, you’ll incur a hefty fee, even if the transaction was approved.
– Don’t pay off your full balance each & every month. If you’re one of those people who like to pay your card off on a monthly basis, make sure you skip a month 2-3 times a year to help build up your credit score.
– Don’t let your card lay around. Keep it protected.
– Don’t take it with you if you don’t need it. Instead lock it up in a safe place at home.
As a credit card user it’s your responsibility to use the card correctly and within your personal spending limits. In addition, it’s important to protect all of your cards 24 hours a day. Your credit cards should be kept in a secure RFID blocking wallet at all times! Protect your financial information, resources, and identity.
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I was not aware of all this important information. This is a very important post to read.
This is an important post for everyone to read especially young people. Credit card debt is the worst! Thanks for sharing this one it has so many helpful tips.