Cindy’s Other Blog

You’ve just gotten a new credit card with an unbelievable limit and you’re excited. But wait a minute. Don’t rush to the mall for that fantasy shopping spree just yet. You should learn a few important tips and recommendations so you can avoid a major credit meltdown later on.

Perhaps your new card is designated for “emergency use only.” If so, you must define what specifically qualifies as an “emergency.” For some people, it could be a ruptured pipe flooding the basement. On the other hand, some people think the Annual Shoe Blowout at the Super Shoe Warehouse constitutes an emergency. Whatever your definition, decide what the card’s purpose is and stick to it.

Maybe you applied for a new credit card to improve your credit rating, which is a great idea if you’re young and planning to make a major purchase, like a home, someday. If so, remember to use your card in a way that helps your efforts, rather than hurting them.

You can maintain a healthy credit score by paying the full balance each month. Be sure to do it on time. Doing so will show that you’re a responsible borrower. You will also avoid having to pay high interest fees. Set a budget and stick with it. This will prevent you from accumulating debt rather which will hurt your credit rating. Charge only what you can comfortably pay off, without having to tap into your savings.

Some people feel the need to check their credit report and score on a monthly, weekly, or even daily basis. Although it’s wise to monitor your record to detect any fraudulent activity, make sure you do it responsibly. It is best to check through one of the three major credit bureaus. You can actually hurt your credit record if you repeatedly check through a credit lender. Therefore, you should avoid doing that unless you’re actively applying for credit.

A common credit pitfall is regularly counting on credit cards instead of savings to make ends meet. Doing so will lead to deep, long-term debt, and should be avoided at all costs. The purpose of having a savings account is to have a nest egg for the future or an umbrella for a rainy financial season.

Credit cards make shopping convenient no matter where you are. The internet has spawned a completely new global shopping market, making it easier than ever to find just about anything and have it sent directly to your home. Make sure the site you’re purchasing from is secure before using your card. This will help you avoid fraud, scams, and identity theft, which can cause permanent, irreparable damage to your credit.

Once you know the basics of smart credit card use maintaining a healthy credit score and staying out of debt will be a piece of cake. You’re now ready to go out there and start charging!