Credit Cards Do’s and Don’ts

There is a lot of truth in the advice that credit
cards are not a substitute for not having money. Every
time you use a credit card this should be the theme
replaying in your mind. And you would do good to
remember the following too.



* Always plan for the purchases that you need and
those that you want. You need the essentials, and you
want everything else. The ability of making a
distinction might help you plan wisely.

* If caught up in financial difficulties, it’s always
good to talk to the 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.

* And if your mails are flushed 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.


* Do not use your credit card to make house hold
purchases. Itís 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
canít afford.


Loans for food

Imagine going to the bank to apply for a loan, and you
state that the purpose of the loan is to buy supper.

Unfazed, the banker very courteously tells you,
“That’s fine, just sign the form. And by the way, you
can take an additional amount for the new
Anheuser-Busch beer which I am sure you and your
friends will enjoy.”

The banker then whispers to you, “eeh, I know I am not
supposed to tell you this, but you will be charged 20
percent annually and 30 percent for late payments.”
“That is just great”, you say, and then take the money
and walk out.

Sounds absurd, yet that is what actually happens every
time one uses a credit card to buy household goods.

Experts say that if you don’t have the money to buy
your basic essentials, you won’t have it end-month.

Robin Holland of Equifax, a credit reference bureau,
concurs. If you don’t have the money to pay for an
item now, you probably won’t have it after the
credit-card bill arrives, he tells Equifax Website
(EFX – news – people).

One may then ask, for what purpose are the credit
cards? For Credit cards are very convenient when used
with maximum degree of circumspection.

Don’t use it for impulse buying, and before you enlist
for one, be sure to check out the minimum payment
credit-card calculator which will show you how much
you will end up paying if you pay only the minimum
amount every month.



Publisher Bio:Nick Naggar, publisher, is a contributing editor at,,,, and, among other sites, where you can read more articles about Arts, Business, Education, Family & Society, Finance, Health, Fitness & Nutrition, Pets & Animals, Sports, Recreation & Outdoors, and Technolgies.You are welcome to link to this article page from your website, subscribe to and use the Article Feeds (RSS) on your website, as well as copy and paste this article as along as you keep this Publisher Bio box for copy rights purposes.

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