Ime Ekpo
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The Proper Use of Credit Cards

Majority of the time when someone gets a credit card it is because of a last resort type of thing, the treat after being financially stoned walled for some time. And because of that joy at times a lot of us go blind into the use of a credit cards, then end up heightening our chances of possibly never getting one again. Not using a credit card properly not only lessens your chance on being approved for one again, but all the other sniffles of better living like a car, house, condo, or boat. You gotta look at that one credit card as a source of building your chances for eased access to the gadgets of better living. Here are some tips on using a credit card.

Only buy what you need.

Do not buy something with a credit card if you are not sure that you will have to money to pay back for it. Using a credit card means that you are buying something that is probably out of an emergency need, and you are certain in two weeks you would have money ready to payback. You can easily find yourself stuck in the cycle of constantly owing. Use a credit card like it is your last resort for emergencies.

Pay in full.

Always pay off your balance each month. Try to keep your balance low as much as possible. It’s best to stick to one credit card at a time, especially if you are on a low budget. It is also beneficial to set a budget for your credit card bills every month. That is a very good practice that can discipline you on your use for credit cards. Always if you stay along the lines with your budget, you will be able to make the deadline and pay in full. A lot of companies do not charge interest when you pay your balance before the deadline.

Have awareness about your credit score.

In order to be able to maintain a good credit score while you are using a credit card is it best to always check after your score. More importantly keep your balances low, even if you are using over 5 cards. Being wise about your decision to use a credit card, following your budget, and keeping your balances low all contribute to a bumped up credit score. It can be that simple.

Communicate with your creditors.

If you know you can’t make a deadline or suspect fraudulent activity on your account, always bring it to your creditors attention. Your problem can be one that happens frequently, and creditors are able to wave off a lot of mistakes in which you avoid suspicious overcharges on your bills, and avoid any blockage of services.

Stay within your credit limit.

You should stay at least between 30%-40% within your credit limit. This is another form of disciplining yourself on your money management. The amount of debt you have on your card contributes to your credit score as well. You don’t want to develop the habit of owing a creditor just for this. Do your best to follow your budget and stay within your limit, if your credit card doesn’t give you the chance to purchase an item, you may just have to suck it up.

Read your statement.

Creditors are not known saints. They are notable for making mistakes on people’s statements. As the user you have the right to dispute any errors. Make sure you were charged the right amount on your purchases for each transaction, no unauthorized transactions, and proper application for all payments. Don’t throw your trust into your creditors being truthful on your statements. Always question anything you see on your statement that is questionable.