Credit Card Tips that will never Let you Down
We are constantly bombarded with tips and hints for smart credit card use, but how can we distinguish between the helpful and not-so-helpful tips?
Although each financial situation is different, there are a key set of tips that will never guide you wrong and never let you down when it comes to managing your finances and your credit card debt:
- Pay on time – So this first tip may sound a bit obvious, it begs repeating: you must pay your credit card bills on time, each and every month, if you expect to enjoy a strong credit rating. Although you may think that your late payments are not such a big deal, understand that creditors and the credit reporting bureaus may not agree with you. If you have a difficult time paying your bill on time, consider setting up automatic bill payment through your credit card or your bank.
- Stay away from any type of “convenience” offered by your creditor – In particular, avoid at all costs cash advances, as they come with hefty fees and are looked down upon by the credit reporting agencies when it comes to your FICO score, and convenience checks, as there are almost always fees and other strings attached to them.
- If you don’t need it, don’t get it – Simply put, applying for a credit card merely to get rewards or other perks is a tricky situation in which to put yourself. In particular, be extra careful when it comes to retail credit cards, as they are notorious for offering attractive deals, while at the same time charging super-high interest rates. It also never hurts to take an inventory of your credit cards on an annual basis to ensure that they are still working for you.
- Be diligent when it comes to checking your credit card accounts and credit score. Don’t just pay your balance each month; take the time to look over your statement and double check all of the charges. Order a copy of your credit report at least once a year, or more if you suspect foul play. It never pays to be too diligent!
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