How to Effectively Use your Credit Card (and not Let it Use You!)
There are many consumers who have gotten themselves into a precarious position: they are slaves to their credit card. Sad, but true.
They failed to pay their bill on time, the credit card company raised their interest rates and slapped them with fees and charges, and now they are simply stuck paying a high balance on a credit card with a high interest rate. Plus, now that their credit is in the gutter, they have little chance of transferring the balance to another credit card with a more reasonable interest rate.
Unfortunately, this is not an uncommon occurrence. In fact, many consumers are stuck in this situation because of past mistakes or bad circumstances. With this in mind, it is important to understand that there are things you can do today to prevent this kind of nightmarish situation:
- Read and re-read your credit card’s terms and conditions.
Those loose little papers that come with your bill often provide important information that most consumers simply choose to discard instead of read. Your credit card’s terms and conditions – or, more importantly, changes to these terms and conditions – can have a big impact on the way you use your credit card or pay your credit card bill.
- Always, always, always pay your bill on time.
There is simply nothing more that needs to be said about this rule. All credit card holders should abide by this rule and use it as a mantra, whenever possible!
- Pay more than the minimum. Or better yet, pay it off each month, if possible.
Don’t squeak by each month by simply paying the minimum balance on your credit card. Make yourself a budget and find extra money to put towards your credit card bill. Even as little as $10 or $20 a month can make a huge difference in your balance over the long run!
- Call your credit card company and negotiate a better deal.
If you have been a loyal customer and have always maintained a good standing with the credit card company then you may be in the position to negotiate a better interest rate. If not, then it may be time to look for a better credit card.
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