by: Debbie Dragon

One of the most important concepts of using credit cards is for you to use them; do not allow them to abuse you. This means staying on top of your credit card accounts and balances and managing them so that you do not incur fees and charges which cause you to have to pay more than you should.

Read and Heed. The best advice is to first read all of the terms and conditions on a credit card before you sign up for it. You should know not only what the interest rate is, but how it can be raised by the credit card company. Read and understand all of the fees associated with the use of a credit card. There are many, so read carefully. These fees will include such items as over-limit fees; cash advance fees; and late fees; just to name a few. You can get hit with these if you are not careful in the use of your credit cards.

Limit Credit Card Use. Another way to keep credit card usage under control is to limit the use of your cards. The first step in this is to keep the usage under an amount that you are able to pay off by the next due date. This has to be a budgeted amount that is set up before you begin to use the card. Once you reach that amount on your credit card, take the card out of your wallet and do not take it with you when you shop. Make sure you have a debit card for your primary checking account handy. This forces you to spend only what you have in your account which is good for keeping within your budget.

Stay Organized. Find a method for reminders that will help you make your payments on time. Use a simple calendar - either the old-fashioned paper type or a calendar on your computer. Make sure you have Internet access to your credit card accounts so that you can not only make payments through it, but also check your balance and monitor activity. Take advantage of any theft, illegal use of or other protections offered by your credit card supplier. Most credit card companies have an email option to keep you informed on when statements are available and for other communications on your account. Use these to your advantage to keep organized.

Payoff by the Due Date. As a part of your budget activities, pay off your balance by the due date. This will keep you from being hit with late fees and other charges to your account which makes your purchases cost more than the price you paid at the check-out. Also, making this a standard practice keeps your credit rating high which places you in good standing for other loan options when it comes time to make changes and/or additions to your credit portfolio. You will be the recipient of lower interest rates as a result. This alone is worth the time and effort.

Have a Rewards Card. Apply for a rewards-based credit card. If you keep your account current and have a good payment history, you will be able to take advantage of many rewards programs from with you can benefit. Do you travel a lot? If so, discounts on airline, hotels and rental cars abound with these types of credit cards. Other cards offer a rewards program from which you can make purchases of items with the points that you build up over time. That is nice as an extra gift either to yourself or others.

Making an effort to do the above steps will make your use of credit cards an enjoyable experience and add to your payment options when purchasing larger items like appliances. Where credit cards are concerned, do not allow yourself to be abused, be in control.

Did you find this article helpful?

Compare Credit Cards

Business Credit Cards