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What You should Do and Avoid when You Own Credit Cards

By George Hauser
Published: Sunday, November 15th, 2009

There is already a growing number of credit card holders. In fact, even teenagers are able to apply for their own credit cards. This is because credit card companies are doing double work in advertising their product and services. However, the increasing number of credit card holders is also the main cause of the increase in consumers getting stuck in debt. 

For one, you can properly manage your credit card dues and other forms of credit if you pay attention to the contents of your credit report. This is the annual report created by credit bureaus about your financial activity. You should do your best to maintain a clean credit report. Since the contents of your credit report are what bureaus use to create your credit score, there are some credit report tips that center on fixing your credit report. 

Other than that, there are many credit score tips that also work to help you manage your credits. There are those which are applicable to those who choose to have installment credit. However, since there seems to be more people preferring revolving credit, there are more credit score tips for credit card management. 

Here is a list of things you can do and should not do when you own a credit card. 

DON’T

  • use your credit card for every purchase.
    When you need to buy everyday good like groceries and gas, you should not charge them on your credit card. One of the credit score tips tells you to use your credit card only when you are making a huge payment. Charging everything you need leads to the accumulation of debt. Before you know it, you owe the credit card company more than you thought with all the purchases you made. If you don’t have cash, use your debit card instead of your credit card.
  • use your credit card to buy things you can not really afford.
    Before you purchase something, make sure that your income can pay for it. Many credit card holders forget that having a credit card is not the same as having items for free. Everything you charge on your credit card must be repaid. Most credit score tips will tell you to stop maintaining a lifestyle that’s actually borrowed. If you continue with this lifestyle and you can’t really pay for it, you will drown in debt.
  • don’t close out a credit card without knowing how it impacts your credit. There are times when you need to close your credit card. Some credit score tips say that you should keep your accounts open for seven years. You should determine what happens to your overall credit before you decide on closing your credit card.

DO

  • make wise decisions when charging.
    This is the same as determining whether the things you are purchasing are those you really need or just want.
  • let your creditors know if you can’t make your monthly payments. Most creditors have plans for you when you have difficulties making your monthly payments. They can either reduce your payments until you can finally pay the regular amounts.
  •  negotiate for a lower interest rate.
    Though your creditors have the ability to increase or decrease your interest rate, you can always try talking to them about the increases.

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