How to get Maximum from Your Credit Cards?
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Get Maximum from Your Credit Card!
This is the rule number one - as you get your new credit card, don’t simply go ahead and use it. You should always have a plan for all of your credit cards. You must be thinking, what does this mean? Here are some examples of the credit card plans i.e. this credit card for grocery purchase only, another one for entertainment only, etc. Why this is important? Because you keep a better check if you keep your expenses in separate buckets. But before you go ahead and implement this plan, you should know some of the basic credit card rules.
So here are the credit card rules:
- Don’t spend what you don’t have. This is a very important rule for all of us!
- Always pay in full every time you received the credit card statement. Don’t get into the trap of paying minimum balance every time.
- Always pay on time or ahead of time.
- Know your credit limit and don’t cross this credit limit.
- Check your credit card statement carefully and challenge the credit card company if there is any discrepancy.
- Don’t hesitate to ask for lower interest rate. You don’t loose any thing if you ask for.
- Switch to another credit card only when you get a very good deal.
- Know how credit card companies charge interest rates on the unpaid balances. Education is the key to control and manage your credit cards.
You should never take the prescreened offers just like that. You should always review if you really need a credit card or not. Also read the fine print, read the terms and conditions before you jump and mail that prescreened application.
Last but not the least, have a credit cards plan and stick to the Plan! And remember that you can be really credit savvy as much as you know about the credit management.
To your better credit cards management,
Neel Author
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Comments
Great help as I was trying to teach this to my son. When I tried to explain it to him, he thought I am crazy. When he read this post, he liked it. Any way my job is done.
Maxie: It is always good to see parents like you sharing good financial tips with your kids. In future I plan to write about tips for students or teens.
[...] This is the rule number one - as you get your new credit card, don’t simply go ahead and use it. You should always have a plan for all of your credit cards. You must be thinking, what does this mean? Here are some examples of the credit card plans i.e. this credit card for grocery purchase only, another one for entertainment only, etc. Why this is important? Because you keep a better check if you keep your expenses in separate buckets. But before you go ahead and implement this plan, you should know some of the basic credit card rules. Read more. [...]
:bunny: This is a good advice. I hardly read the terms and conditions of any credit card offer or application. It looks like I need to pay more attention now. This is a good reminder.