Tips To Use Your Credit Card Smart

Cardholders who want to use their credit cards smart should consider their spending habits, lifestyle, and the purchases charged to the card. For instance, low interest credit cards are recommended to those who carry a balance as to avoid paying high interest charges. Cardholders who travel often may opt for an airline credit card and earn rewards points or frequent flyer miles. Persons who drive frequently can opt for a gas credit card as to benefit from the rebates that go with them, thus saving on fuel.

It is not recommended to carry a balance if you have a high interest credit card because you will pay more in interest. One strategy is to use the balance transfer options offered by various credit card issuers. Some credit cards come with up to ninety interest-free days. Some cards are also featured with very low introductory interest rates in the range 0 - 1.99 percent. Making a balance transfer to such a card is also a good option if you have a high interest credit card.

If you have a rewards cards should redeem the collected points before the expiration date. Interestingly, the majority of cardholders never redeem their rewards points. You may want to check how much points you have accumulated and ask the bank's customers service about the options to redeem them.

It is very important to learn your PIN number and never carry it with you. If you carry the card and PIN number in your purse and it is stolen or lost, someone can take advantage of your credit card. In that case, you should call your issuer immediately.

It is not a good idea to withdraw cash from your card. The card issuer will charge a high fee for that and in some cases, a minimum charge applies regardless of the amount. You can use your debit card or carry some cash with you as to avoid making cash advances.

It is best to pay the full amount each month rather than carry a balance. If you don't have enough money, you may pay the minimum amount, but you should try to pay the balance in full, if possible. Remember that banks charge late payment fees if you miss the payment date. On top of that, your credit rating is likely to suffer. Your application for a car loan, mortgage, or personal loan may be rejected later on. Banks and other crediting institutions favor trustworthy clients who pay on time over those who are unable to manage their personal finances. Finally, don't use multiple credit cards as you may lose track of your spending.