How to Stay Out of Credit Card Trouble
Pay your credit card balances off in full every month., Scan every credit card statement, either online or in print., Guard your credit card information carefully., Pay every credit card bill on time., Keep close track of your credit card balances...
Step-by-Step Guide
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Step 1: Pay your credit card balances off in full every month.
It's far too easy to spend more than you thought when using credit cards instead of cash.
Combat this by tracking your credit card purchases in a checkbook ledger as if they were debit card purchases instead.
Take credit card reward offers with a grain of salt.
If you have enough self-control to keep track of purchases and pay your balance off in full every month while piling up rewards, great.
Otherwise, they're not worth the extra interest and fees that carrying a credit card balance can cost you. -
Step 2: Scan every credit card statement
This helps you spot any unauthorized transactions in time to dispute them. , Be especially wary of phishing e-mails purporting to be from your bank, credit card issuer or other entity and asking to confirm your credit card information.
If you're in doubt as to whether a request for personal information is legitimate, contact your credit card issuer directly using the customer service number listed on the bank of your card.
Never send your credit card information by e-mail, instant message or through an unencrypted website; this sort of online communication is easily intercepted.
Look for "at the beginning of a website address to signal that the connection is encrypted.
Note that some parts of the website might be securely encrypted and others might not; some browsers will warn you of these inconsistencies.
Some browsers also use the image of a closed padlock to denote a secure Internet connection. , Late payments can reduce your credit score and result in extra fees or an increased interest rate. , If you absolutely cannot avoid carrying a credit card balance, limit the balance to no more than 25 percent of the available credit on that card.
Some experts place the "don't cross" limit as high as 50 percent of available credit.
Regardless of exactly where you put it, crossing that invisible line can damage your credit score.
Always make more than the minimum payment necessary.
Your credit card statement will list how long it takes to pay off your balance while making only the minimum payments, and how much you'd have to pay to pay the balance off in a shorter time period. , If you default on a single payment or don't pay in full before the introductory offer expires, your entire balance may be subject to a higher interest rate.
You might also have to pay mandatory fees for balance transfers and cash advances. -
Step 3: either online or in print.
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Step 4: Guard your credit card information carefully.
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Step 5: Pay every credit card bill on time.
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Step 6: Keep close track of your credit card balances
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Step 7: and never exceed your maximum balance.
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Step 8: Read the fine print on any balance transfer or introductory offers before accepting them.
Detailed Guide
It's far too easy to spend more than you thought when using credit cards instead of cash.
Combat this by tracking your credit card purchases in a checkbook ledger as if they were debit card purchases instead.
Take credit card reward offers with a grain of salt.
If you have enough self-control to keep track of purchases and pay your balance off in full every month while piling up rewards, great.
Otherwise, they're not worth the extra interest and fees that carrying a credit card balance can cost you.
This helps you spot any unauthorized transactions in time to dispute them. , Be especially wary of phishing e-mails purporting to be from your bank, credit card issuer or other entity and asking to confirm your credit card information.
If you're in doubt as to whether a request for personal information is legitimate, contact your credit card issuer directly using the customer service number listed on the bank of your card.
Never send your credit card information by e-mail, instant message or through an unencrypted website; this sort of online communication is easily intercepted.
Look for "at the beginning of a website address to signal that the connection is encrypted.
Note that some parts of the website might be securely encrypted and others might not; some browsers will warn you of these inconsistencies.
Some browsers also use the image of a closed padlock to denote a secure Internet connection. , Late payments can reduce your credit score and result in extra fees or an increased interest rate. , If you absolutely cannot avoid carrying a credit card balance, limit the balance to no more than 25 percent of the available credit on that card.
Some experts place the "don't cross" limit as high as 50 percent of available credit.
Regardless of exactly where you put it, crossing that invisible line can damage your credit score.
Always make more than the minimum payment necessary.
Your credit card statement will list how long it takes to pay off your balance while making only the minimum payments, and how much you'd have to pay to pay the balance off in a shorter time period. , If you default on a single payment or don't pay in full before the introductory offer expires, your entire balance may be subject to a higher interest rate.
You might also have to pay mandatory fees for balance transfers and cash advances.
About the Author
Anna Cole
Brings years of experience writing about hobbies and related subjects.
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