Sep 05 2008
Make your credit card save cash
A credit card holder has not only the pending bills to worry about but also has the issue of increasing interest on it to take care of. Even though the basic rule of not overspending beyond your limit and paying your bills on time to avoid paying the penalty holds good but still there are some other simple measure which if kept in mind can go a long way in keeping you and your card payments away from the debt zone. While deciding on a new card one must view the decision with a long view term.
Holding store cards is by no means a good idea as they not only have small credit limits but also have higher interest rates. Careful scrutiny of the attractive and alluring offers coming with these cards is of uttermost importance. Make it a habit to carefully read and understand all the terms and conditions coming with the card. Negligence on this part has the potential of making you a victim of late fee charges or other such charges which was not mentioned to you but was mentioned in the terms and conditions. People by their own experience also recommend using two major credit cards- one which you use regularly and pay off all its bills on time and at the same time accumulate its reward points and the other card with preferably a low interest rate which can be used by you in emergency situations.
Using way too many cards also is not advisable as it will over burden you with due bills and may harm your credit score in short run and adversly affect your credit report in the long run. Clearing your due amounts in time and as full payment is a sure shot way of ensuring that you never accumulate unwanted interest on your bills. If your finances do not allow you a full payment then the next best option would be to pay more than the minimum prescribed limit. This act is also effective in giving your credit scores the lift it needs. Keeping in mind these basic steps would ensure that credit cards remain a source of fund for you and do not end up being a burden.