How To Use Credit Card Properly Without Damaging Your Credit Score

Dr Watson Goh By Dr Watson Goh, 11th Apr 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/1do8mmyk/
Posted in Wikinut>Money>Credit Cards

During my younger day immediately after getting my degree and my first job, I also got hold of my first taste of credit cards usage. The ease and "power" that these cards make me ride the cloud for about one year (with an average card limit of 5000 dollars multiply by about 10 cards = a total of about 50,000 liquid cash on my call to spend) During that time, I am everyone best friends especially the opposite sex.

How To Use Credit Card In A Safe Way

During my younger day immediately after getting my degree and my first job, I also got hold of my first taste of credit cards usage. The ease and "power" that these cards make me ride the cloud for about one year (with an average card limit of 5000 dollars multiply by about 10 cards = a total of about 50,000 liquid cash on my call to spend) During that time, I am everyone best friends especially the opposite sex.

Unfortunately, after one year, I deteriorate from riding the cloud to crawling in the mud. I was a total mess, credit wise. The nightmare started when the banks and their appointed debt collectors come a calling. Begin young and a credit idiot, I simply ignore them thinking that the problems at hand will just conveniencely disappear. That off course, did not happen and in the mean time, the debt started to grow bigger and bigger and the 24% annual credit card interest simply compound the problem even larger. I was seriously comtempting running away from home to hide from the problem. Subsequently when my parents found out about my trouble I gotten into, they with deeply sadden and unwilling hearts (having to part with their 40+ years of retirement saving) pay off all my credit card bills.

From that moment onwards, I become very aware that the amount of hurt I have caused my parents is totally unnecessary and pledged to myself, that I will never ever be in that kind of suituation again. As such, I started to research into the various methods of proper usage of credit cards. Below are just some of the key points to ponder around.

CHECK YOUR CREDIT SCORE REGULARLY

Checking your credit score/report/FICO score regularly is a must. On AnnualCreditReport.com, you can get a free credit report from different bureau such as Experian, Equifax and TransUnion, yearly. Also, get your report from a different credit bureau every four months, instead of just ordering them all at once. By doing so, for a whole year, you can actually monitor your report for a whole full year.

Reading such report is not like reading a book. Key points to look out for include checking for error entry, identify theft, wrongly entered credit debts, etc.

Also, be very sure about how much credit card balances are on each of your cards. Always be on a look out for extra interest charges and the rates that is being used for such calculation. Used modern day technology to assist you in your checking process, like through iphone, ipad, etc.

PAY YOUR MONTHLY BILL IN FULL AND ON TIME EVERYTIME

If you wishes to be free from credit card debts, one of the key criteria is to be able to maintain an organised credit life. One key advantages of paying in full every month is that you will know very clearly where you stand in terms with credit card balances. The goal is to pay off the balance every month. There is TOTALLY NO negotiation on this issue.

You must slowing built up your self-discipline to stop spending when you reach your budgeted limit. If after three months, your history keeps showing that you are not begin able to pay in full each month, then DO NOT USED THEM. Not using them does not make you a lesser person, instead pat yourself on the back for begin honest. Most successful people whom managed their money well, knows exactly what their strength and weaknesses is and then make them accordingly.

USED THE CREDIT CARDS TO YOUR ADVANTAGE

Making used of the offered rewards whenever you make used of the credit card is one of the best way to "leveraged" your finance. Just think, spending $XXX will get you a $XX rewards or gifts. However, like I always mentioned eariler, remember to pay off all your bills in FULL EVERY MONTH. That is because rewards cards usually come with higher interest rates attached. If you carry a balance, you not only negate the benefit, you lose money


ALWAYS KEEP TRACK OF YOUR CREDIT CARD EXPENSES

Not tracking your credit card expenses will get you sleepness night worrying over these credit card bills. Therefore, like most people, upon receiving the monthly statement, you will most probably faint or suffer deep anxiety. However, a highly effective user of credit card user will NEVER EVER BE SURPRISE by his statement. And because he / she is always paying off in full every month plus his constant tracking of expenses, everything in the statement is well within his control and knowledge and he / she is fine with it, as it is just another mail.

Read Credit Card Bills and Disclosure Statements

Effective user always open up their statement immediately without any delay, scan through all the entries making sure the charges are legitimate. Any discrepancies they spotted, he/she will get onto the phone immediately. Nowaday, it is also advisable to read all the disclosure statements you receive. With the credit card legislation still being phased in, credit card issuers can be very creative in their fees fixing.

Tags

Credibility, Credit, Credit Account, Credit Card, Credit Card Civil Cases, Credit Card Debt, Credit Card Debt Collectors Philippines, Credit Card Payments, Credit Cards, Credit Crd Handling, Credit Crunch, Credit Debt Help, Credit Repair, Credit Report, Credit Score, Credit Scores

Meet the author

author avatar Dr Watson Goh
Dr Watson Goh develop strategies to help you succeed in your online business. Want to learn how to earn 5K or more a month ? Go To : http://wealthgeneration.mobi/recommends/EmpowerNetwork NOW !!

Share this page

moderator johnnydod moderated this page.
If you have any complaints about this content, please let us know

Comments

author avatar johnmartin
5th Sep 2012 (#)

Credit card is a good facility for us but we should understand it’s value and we should use it very sensibly, otherwise we may face any big debt problem, because credit card companies charge very high, if you withdraw cash through credit or make delay payments.
http://www.paydaybank.co.uk

Reply to this comment

author avatar Jamma
15th Oct 2012 (#)

credit card is an option which can allow you to gt instant cash advance to fill your cash crunch. www.directloanlenders.org.uk

Reply to this comment

author avatar Nicole Marie
6th Feb 2016 (#)

Best Place To Get Your Financial Problem Solved (Lexieloanfinance@gmail.com)

My Name is Nicole Marie, I live in USA and life is worth living comfortably for me and my family now and i really have never seen goodness shown to me this much in my life, As i am a struggling mum with two kids and i have been going through a serious problem as my husband encountered a terrible accident last two weeks, and the doctors states that he needs to undergo a delicate surgery for him to be able to walk again and i could not afford the bill for his surgery then i went to the bank for a loan and they turn me down stating that i have no credit card, from there i ran to my father and he was not able to help me, then when i was browsing through yahoo answers and i came across a God fearing man (Mr Martinez Lexie) who provides loans at an affordable interest rate and i have been hearing about so many scams on the Internet mostly Africa, but at this my desperate situation, i had no choice than to give it an attempt due to the fact that the company is from United State of America, and surprisingly it was all like a dream, i received a loan of $82,000.00 USD and i payed for my husband surgery and thank GOD today he is ok and can walk, my family is happy and i said to myself that i will shout to the world the wonders this great and God fearing Man Mr Martinez Lexie did for me and my family; so if anyone is in genuine and serious need of a loan do contact this GOD fearing man via Email: ( Lexieloanfinance@gmail.com ) or reach him through this number +1 (406) 946-0675 thanks

Reply to this comment

author avatar Dr. Carson Grant
5th Feb 2017 (#)

DO YOU NEED A LOAN TO START A BEFITTING NEW YEAR!!!!!!

Are you a business man or woman? Are you in any financial stress? Or do you
need money to start your own business?

Do you have a low credit score, and you will find it difficult to get loans
from local banks and other financial institutions? solution to your
financial problem is Dr. Carson Grant The Terms and Conditions are very simple
and considerate.You will never regret any thing in this loan transaction because i will
make you smile through out this transaction, because you where not born to be a loser

Email (carsongrantloanhome@gmail.com)

Our services include the following:

* Personal Loans
* Debt consolidation loans
* Possibility
* Business Loans
* Education Loans
* Mortgage
* Home Loans

We offer loans at 2% interest rate

We offer loans to people in need of financial assistant with a low interest
rate of 2%. In order to get a loan with this company, you can tell the exact amount of
loan you need and the time in which you can pay back the loan.

NOTE: You are required to email us on:(carsongrantloanhome@gmail.com)

Reply to this comment

Add a comment
Username
Can't login?
Password