Using credit cards to avoid falling prey to debt traps

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Using credit cards to avoid falling prey to debt traps

Using credit cards to avoid falling prey to debt traps

By
Add to Favorites:

When you whip out a wallet full of a bunch of fancy credit cards, it`s often with a lot of pride. But be sure that you have a handle on how you use it, so that you don`t end up splurging more than necessary. Credit cards when used carefully will win you plenty of bonus points, reward deals, scores and cash back offers. However, careless and unplanned spending sprees will lead to more debt than you can dream of in a lifetime. Make sure you have your finances in place and do things in a planned manner when using your credit.

Credit cards are an expensive affair. Surely they make life easier, but they also come with consequences. There are fees you have to pay on your card; there are also interest rates which are applicable. Make sure that you close whatever amount you swipe every month or at least the larger percentage of it. Leaving something for another day will make you unable to cope and eventually you will end up with bills you can`t even begin to sort out anytime soon. Pay up every month and if you have some money to spare at the end of the month, use it close that outstanding balance first and foremost.

Watch your credit score. Firstly, ensure that you avail of the free credit report that comes every year from all the three credit unions and check every entry in it to verify them. Secondly check that you don`t apply for too many cards at once as this does impact your credit score adversely. Stick to 3 or 4 cards and keep the older ones open as closing them will also cut down on your credit score. Understand when your payments are due every month and don`t miss the dates at any point, even if you are traveling. Check how the payment plan may change and make sure you know about any changes in interest rates applicable as all this is disclosed before hand to the clients by the banks as per the new credit card rules.

Pay attention to your credit limit. Make sure that you do not use up more than 30% of the credit limit available to you. This is a bad sign to the creditors and it also tends to lower your credit scores considerably. They are always looking at what amount of available credit is being used by consumers and when you go overboard on it, it sends off warning bells in their heads.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading
Credit Card Tips For Holiday Shopping 2016

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading
Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading