Having a credit card has become quite the norm now days. I mean how often do you see people actually paying with cash anymore? Okay maybe sometimes but most often we always see and even ourselves use a card to pay for things. Many people have different views and opinions about credit cards, which I am sure you have all heard about. But credit cards have now basically become a necessity for anyone trying to rebuild a credit score or for someone who is trying to start building credit. Here are a few rules and reminder to keep in mind while using yours:
- Credit cards are just like borrowing a loan. Remember that when using your credit card. Think of it like you are borrowing some money from a bank and you are going to have to pay them back and they most likely are going to tack on a little bit of interest.
- Keep track of how much you spend each time you use the card. Not keeping track of each purchase can push you over your own personal budget. Most of us tend to think that because money does not come directly out of our checking accounts we spend more than we have.
- Save your receipts or view the transaction history from your account. It is not impossible for an extra charge or random late fee to show up on your credit card. Keeping your receipts shows the real transaction that occurred. It is a good habit to add up amounts on receipts and then check them with your monthly credit card bill.
- Check your card status monthly to make sure you have not been a victim of fraud or credit card theft. It is a problem that is unfortunately becoming much more common. They also have other ways you can protect this from happening like getting your picture on your card for example.
- Don’t share your card or account information with anyone. You don’t know what they will buy and if they will be sure to pay the bill back on time. Credit cards affect your credit score and you wouldn’t want to have it damaged because of the time you let your friend borrow your card.
- If possible when paying your credit card bill try to pay more than the minimum amount due. This way you are going to be saving yourself some money by paying less interest because you will finish paying off your amount sooner than if you pay minimum amount.
- Be sure that you pay your bill on time, and in full when possible. If you don’t, you’ll have to pay back finance charges and it could damage your credit score.
- Destroy old and expired cards. Don’t hang on to the ones that you can no longer use either cut them up or use a shredder to get rid of the card.