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Charge Carefully: The Dangers of Credit Cards

By Brian Anderson
Published: Friday, December 18th, 2009

Credit is a new comfort that many people in the new world cant simply live without. The days of monetary exchanges using paper and metal are gone and have been exchanged with a plastic card. An entire bank account can be compressed into one credit card to make transactions much easier. And also loosing this card does not necessarily mean that you will loose all the money in it either because you can always call your bank and have your credit card frozen.

The thought of having one card that does all the transactions for you with the security of protection from actually loosing all your money if it gets stolen sounds too good to be true. Well probably is. You see although you don’t see it, the credit cards pose an invisible threat that can damage your reputation and your credit worthiness if you are not careful with it. Without proper credit score advice, a simply credit card could ruin many things for you.

Credit cards give many spenders the false image of unlimited cash. Many credit cards start people off with very high credit limits giving them a lot of freedom to spend. Another problem here is that credit cards hinder a person’s ability to budget because there is no actual money involved and the very fact that you are using credit cards is because you have no money at hand to presently make the purchase. This can be damaging to ones credit score that keeps track of your different transactions.

Your credit score will determine your credit worthiness and because of this you have to always maintain or increase you credit score in order for you to be able to make loans with the lowest interests or to be  able to make a loan for that matter.

One credit score advice would be to try to limit the number of times you can use your credit card. Think of your credit card as a lifeline where you are only granted three uses per month. This will limit expenses to actual cash that you have and at the same time teach you how to budget.

Another credit score advice is to always monitor your credit score. Remember that credit inquiry is a right of every person. Inquiring about your credit could be a good way to actually see your spending patterns and help you cut down on what you are spending too much off. Many people do this and are shocked to see that they spend too much on one think that they almost never really use.

Another credit score advice is to always monitor deadlines. Make sure to always make deadlines when paying back credit. There can be little to no viable reason to any credit company on why you would pay late. Also take note on the Interest that is put on credit so that you can prepare for paying credit companies back without loosing an arm and a leg

If you follow even one credit score advice here, you will be able to do transactions and budget your money more smoothly than before.

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