Home » Finance

Avoid Credit Card Traps to Benefit Financially

Aug 7, 2008
There definitely isn't a shortage of offers of credit cards online, in the mail, and anywhere else possible. However, it can become a hard task to maintain your credit card, and it can prove even harder to get the right credit card you need.

High Street stores are always too willing to give you some sort of discount the day you sign up for a card, and lets face it, the extra 10% discount is usually very tempting. After this discount, you find yourself stuck with another monthly credit card bill.

The main problem with credit cards is the illusion that you are not actually spending money. There is nothing missing from your wallet or purse and it is so easy to flash the card here, there and everywhere.

Credit cards were not made with budgeting in mind, because each month, there is a payment that has to be paid, and even though being able to meet the minimum payment does not bring about any sort of late payment fees, just look at the balance, it is more or less standing still!

Ask yourself just how long it would take you to get rid of the debt completely if you didn't charge another penny to the account. Never consider getting a new credit card to transfer a balance unless the new card offers you interest free credit for a certain amount of time, ideally the time it will take for you to pay off all of the debt.

Many of the major credit cards are accepted everywhere, no matter where you go, so one should suit you. At the most, have two. This is a much easier way to keep an eye on expenditure, rather than having five or six credit cards to sort out each month.

Another credit card temptation that can get you in a lot of trouble is the ability to borrow cash on your card. This is known as a cash advance and it enables you to withdraw cash from your card via an ATM. However, this form of borrowing is usually charged at high interest, calculated daily, and is ultimately a very expensive way to borrow. It can be too easy to create a level of debt that is too high for you to service. If you are going through a difficult time, withdrawing money from your credit card can seem a godsend. Unfortunately, your debt can climb dramatically over the course of a few months and with exorbitant interest rates you can find yourself in real trouble. It is also a good idea to stick to a low cost, no frills credit card that offers low interest and no annual fee.

If you stay in control of your credit card spending and payments, you can build a positive credit history through them. It is important to maintain a good credit rating so that when you are ready, you are able to borrow for a car or even a home at competitive interest rates.

When trying to establish a good credit history, you can do so by using a credit card correctly. Your payments have to be on time. It is important that your credit rating stays healthy, especially in the case that you need to buy something big, like a car. During these times, you will be rewarded for having good credit history. As much as some of us love them, shopping sprees aren't needed. Neither are cash advances and late payments. These all go into your credit rating, so if you are looking to use your credit card to build up good credit, only spend what you know you can afford to pay back each month.
About the Author
Nick Makaryk is an Editor, Freelance Writer, and Owner of Best Credit Cards . A Free consumer credit card comparison site helps individuals find the Best Credit Card while avoiding higher interest rates, charges, and fees.
Rating:
Please Rate:
(Average: Not rated)
Views: 122
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources