Tips For Responsible Credit Card Use

These days it seems the use of credit is running rampant. So many people are purchasing things they don't have the money for. This is quickly ensuring a generation of people who will spend a majority of what they earn just to may down their debt, instead of using their hard-earned money for other things.

Credit is an important part of buying the necessities in life, such as a home, or a vehicle. The more credit you're able the build, the better, so a credit card is an easy avenue to get there. Credit used irresponsibly, however, can do serious harm to your credit status. Therefore, a serious look at responsible credit card use is important.

The first thing to remember when using your new credit card is to go by a budget. Decide just how much you can comfortably afford to absorb and try not to go over this total. Just because you have a limit of $5000, doesn't mean you should max this number out each month. It is ultimately your money that you are spending, so keep this in mind when developing a budget.
Pay the full balance on your card as often as possible. If you are sticking to your monthly budget, this shouldn't be a problem. Keeping your balance paid in full will ultimately boost your credit rating much quicker, as creditors will see you as a much lower credit risk. Paying in full will also help you to avoid costly interest charges. Paying just a minimum monthly payment will ultimately cost you many times over in interest charges, so it is important to pay your balance in full to avoid those extra charges.

Pay close attention to your statements. Credit companies can normally change interest rates with advance notice. Read your statements thoroughly to ensure you're well aware of any changes in your account and act accordingly.

Keep track of the due date for payment and be sure never to be late in making your payment. This is where credit companies earn a majority of their profits. They will charge a late fee, even for being one day late with your payment. Always try to get your payment in well in advance to avoid a late fee.

Save all of your transaction receipts. Hold onto your receipts and check them against your monthly statement to ensure there are no mistakes. This will ensure you have physical proof in case the listing in your statement does not match up with your receipt. The last thing you want is to pay extra for something because you misplaced your receipt.

Never give your PIN number to anyone. There is no valid reason for a bank, credit card company, or any merchant to request your PIN number. Disclosure of your PIN number can lead to credit card fraud and the possibility of you being stuck with charges you never made.

When paying with your card, keep a keen eye on the merchant accepting it. Be on the look out for any suspicious activity. Card skimming is becoming a highly lucrative form of fraud and could potentially cost you a lot of money if you are hit. If you suspect you have been the victim of skimming, or any other form of credit card fraud, contact your credit card company immediately to have it deactivated.

Following the tips outlined above should help you make responsible choices when using your credit card and will hopefully help you avoid pitfalls many do not. A credit card is a very convenient tool when used responsibly.

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