by: Sintilia Miecevole

Getting and having a credit card can be a beneficial thing for most people. You will have a big advantage when you have a credit card. A credit card can be especially useful when you want to purchase items remotely. Think how much easier it is to make purchases online, and reserve plane fare or hotel rooms over the phone when you have a credit card. It can also come in handy when you just dont happen to have cash when you decide to make a purchase. However, there is a flip side to having a credit card! A credit card can cause several problems if you dont watch your spending habits closely. When you get and use a credit card, you should recognize that you have taken on a big responsibility with some very serious consequences. Following the simple tips below can keep you out of trouble when using your credit card and allow you to enjoy all benefits:

1. A charge on your credit card is the same as taking out a mini loan! Keep track and make sure you dont overcharge on your credit card, as you have to be able to pay back all whatever amount you have borrowed.

2. Watch the balance on your credit card and keep a record of the balance from month to month. Keeping track of what you have already spent will help you make the decision of whether you can use your credit card for any additional purchases. Even the small $5 purchases you make here and there can add up on a credit card if you dont watch outand then the interest will also add to your balance owed.

3. Keep your credit card receipts until the end of the month and compare them to your monthly credit card statement. This practice will allow you to catch any incorrect charges, or sometimes you may catch a purchase you never made! If you do find discrepancies between your receipts and your statement, call your credit card company right away.

4. Neither a lender nor a borrower be! That is a good motto when it comes to your credit card or credit card number. Dont give these out to anyone! Even though you may trust your family and closest friends, you cannot keep track of purchases you are not making.

5. Make it your habit never to charge more than you can pay back. When you do charge more and dont pay it back, it can hurt your credit rating and will affect your future chances of getting credit approval. This can include important purchases you may make in the future, like car loans, home mortgages a

6. Pay your bills on time! When you pay on time, you will save on accruing interest and extremely high finance charges for late payments. If you miss a payment, finance charges and interest just keep adding up, making your balance get higher and higher.

7. Try to pay all of your credit card balance in full each and every month. Put credit card payments into your monthly budget, and dont purchase more than that allotment each month.

8. Remember you are responsible for $50 of any unauthorized charges on your credit cards.

9. Keep your credit card for new purchases only. Dont pay off other household bills with your credit card. This will inevitably lead to more charging and higher balances.