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The Responsible Credit Card User – Do’s And Don’ts For Credit Card Users

So you finally received your credit card. Your feet are burning to go to the mall, and your hands are itching to shop!

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While credit cards give you the ease to purchase things, you have to understand that each item you buy using your credit card is a debt you are going to owe your bank. The more you use your credit card, the more debts you accumulate. The more debts you accumulate, the harder it will be to pay them, unless you are living a rich man’s life and money is never a problem. But if you are living the paycheck-to-paycheck way of life, then you are going to have a huge problem come the billing period. If you do not pay the right amount and on time, your credit score is going to suffer, which is definitely something that you do not want to happen to you. Below are the common do’s and don’ts when it responsible credit card use.

The Do’s

Do be wise when it comes to using your credit card. Are you going to use it to purchase an item that you need or an item that you want? This is, in fact, one of the reasons why many people have problems with their credit cards. They tend to use their credit cards to get what they want, even if it is very expensive. A week-long vacation in an exotic country? No worries; here is my credit card. A new gadget? Take my card. Need to upgrade gadgets? Go ahead; swipe it. This way of thinking can easily put you in a lot of debt. If you are going to use your credit card, you need to determine the importance of the item you are going to purchase with it. Is it a need or a want?

Do pay your bills on time. If you won’t be able to pay your bill on time, then let your provider know and explain your situation. If your reasons are valid, your late fees might be waived. If you do not pay your bills on time, not only will you have to pay late fees, but your credit score will also suffer. Regular late payments will also result to higher interest rate.

The Don’ts

Do not leave your credit card lying around. You do not want to be the victim of a credit card fraud wherein someone else is using your credit card and your information to purchase things. Along the same line, do not use someone else’s credit card. You can be charged with credit card fraud, says Tad Nelson & Associates, a law firm based in Texas that specializes in white collar crimes. Charges like this, if found guilty, could land you in jail.

Do not treat your credit card as a bottomless wallet, one that you can use for your everyday purchases. If you get used to using your credit card as a substitute for cash, you will easily find yourself in a lot of debt. Credit cards should only be used for emergencies, and never for your everyday use.

These are just some of the do’s and don’ts when using your credit card. Be a responsible credit card user to avoid problems.

Jennifer Dae is a content provider for family blogs. She writes about money saving tips as well as wise spending tips.

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