Friday, October 7, 2011

To Swipe or Not To Swipe

Badly, a credit card is not your fairy godmother. It is not going to give you everything that you want. So before you start acting like it will, remember that shopping with a credit card is not always a fairy tale. There are evil stepsisters in the form of interest rates and monthly bills. And much like Cinderella’s everyday chores, owning a credit card is a great responsibility. But fear not: Managing your credit card is possible. You can certainly avoid the nightmare despite your monthly bill by keeping these in mind.

Know the bank rules. Aside from the credit limit that comes with every card, there are interest rates, finance charges, and late payment fees. Be aware of these details to avoid bad credit score or bad credit loans. Write down important dates, like the statement date and payment due dates. Always remember that when you delay your payment later than the due date, you automatically pay more.

Know your financial status. Credit cards equal responsibility. Refrain from acquiring one unless you have assessed your financial stability. Figure out first if you have the capability to pay for any purchases you will be making.

Stick to a budget. Yes, this applies to credit cards, too. Don’t spend more than you can afford. A credit card doesn’t give you license to purchase to your heart’s content. A bill will inevitably arrive and you will have to pay.