Thursday, November 12, 2009

Don'ts for Credit Card Holders

Credit card is my life saver.... I can buy the things I need even when I run out of cash. That is why credit card is so important. Especially this Christmas, everybody is busy shopping gifts and stuff for the holiday. But yeah, it is so easy to swipe the card but when the bills arrive, it can make your head crack like an egg shell.

I have few things to follow that can make me a "good" credit card user, I read an article a while ago and let me share this to you. This is actually came from Susan McCarthy, a financial adviser in Oklahoma City and author of The Value of Money.

*4 things you should never do with your credit cards*

1. Don't make only the minimum payments. This stretches out your payment and, thanks to the interest, significantly increases your overall cost.

2. Don't carry too many cards. Multiple cards make it easier to rack up debt because it's harder to keep track of your spending. Having lots of cards isn't necessarily bad for your credit, but misusing them is. So limit your plastic to two national cards (store cards often carry higher interest rates) that you manage carefully.

3. Don't miss payment due dates. Not only will you be hit with a late fee-as high as $39 on some cards-but your interest rate could also jump. Sign up for online banking or pay over the phone if you're up against the deadline. (You may pay a processing fee, but it will probably be less than the late fee and the possible interest-rate hike.)

4. Don't take cash advances. These advances generally come with sky-high interest rates and service fees, making them a far too expensive way to get cash. Avoid at all costs.

Well, its so basic and most of us do the opposite of these, and end up in large amount of bills to pay, then headache eventually follow...

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