Tips For Wise Credit Habits

Summary:

Credit is an easy way to make major and everyday purchases affordable. Sometimes, however, it can be too easy. Spending more than you earn in any given period is a dangerous practice at best.

Credit is an easy way to make major and everyday purchases affordable. Sometimes, however, it can be too easy. Spending more than you earn in any given period is a dangerous practice at best. Monitoring and adjusting your charges and payments can reduce your risk of credit overload down the road.

Here are a few ways you can make the most out of your credit and keep it under control:

Know the terms of the card(s) you’re currently using. All cards come with an agreement of terms and conditions.
Take a minute to read your monthly credit card statement. This can help you keep track of your cards’ rates, current balances and the way you use them.
Look into the security protections your card offers. With credit card fraud on the increase, you need to know what to do if a problem arises. Quick reporting can save you the headache of dealing with errors that could affect your credit rating.
If you’re tempted by a new card offer, carefully consider the deals they offer, including “no annual fee” details and low introductory rates.
Worried your credit card debt is getting too high? Take a look at your spending habits. You might be surprised at how much you’re spending on shopping, restaurants or entertainment. Or you may be dealing with core expenses like rent, house or car payments or medical bills. Are there any areas you can cut back?
Create a realistic budget to pay off your credit card debt in the shortest time possible. And, try not to add any more debt to it. A financial advisor or credit counselor can also help you allocate your funds in a way that puts your debt under control.