Using Credit Cards Wisely

Wise use of credit card demands it to be protected from two dangers. The first danger is you! And the second danger is fraud. Always keep the following tips in mind.

• Never go overboard in your spending .Know you budget, respect it and always adhere to it. Have a plan to pay back the money you charge to your credit card before you make the purchase. It is real money you are spending. Sooner or later the bill is going to catch up with you. Before you use your credit card to make purchases consider how you will pay the bill when it arrives in a few weeks time.
  
  
• Keep a track of money you are spending. By paying cash or writing a cheque for some items or paying your credit card balance twice a month may be more beneficial to you and allow you budget your money better. This way money is coming out of bank account for some items and you will have an idea of how much money you will owe at the end of the month to avoid the interest charges.
  
  
• Always try to maintain a good credit rating. In case you are not able to make a payment due to some unexpected reason, get in touch with your creditors. You may be able to extend the repayment period and lower the monthly payment.
  
  
• Keep copies of all of your credit card receipts to compare to your monthly statements. Follow up on any errors. Shred or otherwise destroy carbons and receipts before throwing them away. For each of your credit cards, keep a record of the account number, the issuer's name, and the phone number to call if your card is lost or stolen.
  
  
• Always keep the credit card number and expiry date confidential. Draw a line through blank spaces above the total when you sign receipts. Rip up or retain carbon copies. While shopping online make sure to it is a trusted site before using your credit card. Never give the credit card number to someone on telephone unless dealing with a reputed company. In case of lost/stolen credit card immediately report the matter to the credit card company.
  
  Credit cards are there to make your life easy, not to be a source of tension and anxiety. Use it sensibly, pay the bills in time and enjoy the benefits.