Remember Jay Leno’s top ten countdown list?
We’ve put together the top ten credit card
dos for you to keep in mind!
Ten!
Before you move, notify the card issuer –
in writing – of your new address. It seems
like an extra step when mail should just get forwarded
with a postal forwarding, but with things like bills
and invoices, you should make sure that you can
be found. It's very easy to lose track of bills
and get behind on payments, especially if you're
not getting them. With most things online and available
over the phone, these cards still expect prompt
payments, and if it's a matter of things getting
lost in the mail, they don't even know that you're
not getting your bill.
Nine!
A poor credit history can hurt your chances of
getting an apartment, a car loan, and in some cases
can even affect your chances of getting a new job.
It seems like everyone has something to say about
keeping up with your credit, but it is true. Especially
if you're young it's easy to think that you don't
need good credit yet. It's even easier to say
"Well…everyone else has bad credit."
If everyone else jumped into a pool of sharks, would
you? It's kind of the same thing.
Eight!
Are you having trouble paying your bills? It’s
important to seek assistance before your debt gets
out of hand. Take steps to resolve your credit instead
of ignoring it while it piles up because it will
only get worse!
Seven!
You will incur add fees if you pay your bill late
and/or charge above your credit limit. It’s
best to keep your purchases within the realm of
reason, and then make sure that you pay on time
and in full. That's the best way to keep on top
of your credit.
Six!
Know your credit card interest rate, statement
due date and credit limit. Otherwise, how will you
pay your bill on time and understand the consequences
of not paying the full amount?
Five!
Interest charges are added when your bill is not
paid in full. If you make a large purchase and don't
pay off the full amount in a reasonable time frame,
you could end up spending up to twice as much for
the same item in finance charges and interest.
Four!
Pay more than the minimum due or pay off the balance
entirely. If you just pay the minimum, you are barely
covering interest charges, and you aren't even beginning
to pay off your purchases at all. If you only pay
the minimums, it's likely it will take years to
pay off a single purchase.
Three!
Simple rule: if you can't afford it, don't charge
it. It’s important to remember that credit
cards are not additional income, but instead a means
of using the income you already have. If you charge
something you can't afford, you still won't be able
to afford it, except now you have a bill to prove
it.
Two!
Pay your bill on time, every month. Late charges
can add up, and then you get charged interest on
them as well.
And the number one do for properly
handling a credit card is…
Create a budget so you'll know what you can afford.
It seems a logical thing to do, but a lot of people
don't even balance their checkbooks! Make sure you
know what your finances look like and you won't
ever be surprised at a checkout counter.
