Owning a credit card can be quite an advantage. Whether making online purchases, booking an air ticket or a hotel room on the phone or simply being in need of some emergency cash, having a credit card can be a big help. However, getting a credit card is also a huge responsibility and if you don’t keep an eye on your spending habits, credit cards can create some serious problems. Here is an excellent list of tips on proper credit card use and if you follow these but first don’t forget to do the capital one card activation, you will likely stay out of trouble and your credit card will be a blessing instead of a curse:
1. When you make a purchase with the credit card, itis akin to taking a loan from your bank. What you have borrowed has to be returned – so do not borrow beyond your capacity to pay it back.
2. Always be aware of your outstanding credit card balances. This will help you determine whether you can make additional purchases. Even small purchases can really add up to big balances and substantial interest charges.
3. Any credit card receipts should be kept until you can compare them to your monthly statement. If you find any purchases you did not make, or higher charges than those on the receipt, contact your credit card company immediately.
4. don’t give your credit card to anyone, not even friends and family. It’s not that you can’t trust these folks but it would be really difficult to track purchase if you are not the only one making them.
5. don’t ever borrow more than your ability to pay it back. If you do and consequently aren’t able to pay it back, it can hurt your future ability to obtain other forms of loans such as home mortgages, car loans etc.
6. Pay your credit card bills on time or even before they are due. Doing so will not only help improve your credit scores but also help avoid additional costs associated with late payment charges and accrued interest.
7. Try to have your credit card bills paid in full every month. To ensure this, budget your credit card purchases on a monthly basis and they don’t allow your purchases to exceed that amount.
8. Keep your credit cards for new purchasing. don’t pay one credit card bill with a different credit card. This will inevitably lead to more charging and higher balances.