Credit cards are beneficial to almost everyone. Though these plastic cards are regarded as sinful things sometimes, they have helped numerous people and businesses achieve success.
A good credit card history reflects the attitude of the card user. Good credit records increase chances of gaining employment, winning deals and obtaining more future loans. On the other hand, a bad credit history can result to being piled up with more debts and business failure.
People availing their credit cards for the first time must take a quick lecture of cash management. Usually, for students, parents play the roles of the lecturer. Professionals learn from other professionals. Books and internet information resources are two other ways to have a view of what it takes to hold credit. This step will help the potential holder to think deeply and decide whether to avail of the cards or not.
The next step is to find a perfect credit card issuer. Visiting banks and inquiring about the services is one. Another is shopping for credit card issuers through the internet. Both are widely acceptable.
Having a credit card on hand, holders must practice responsible credit card management. Gerri Detweiler outlined six strategic ways to use credit cards. These are:
Borrow Cheaply: Availing of low-rate credit offers while being keen and careful of the terms attached to it, such as high balance transfer and penalty fees. Play the Float: Making good use of credit terms. To reduce finance costs, pay when due and make purchases after the issuer's billing cycle. Another way to play the float is interest-free financing. Temporarily invest money at a high-yield savings account before using the money to make payments for 0% interest credit purchases. Rack Up Rewards:
Taking advantage of rewards and perks available any time the card holder makes use of his or her credit card. Shop Safely: For billing errors, the proper way to send a complaint is to send a letter to the credit card issuer. Include return receipt and photocopies of documents to support complaint. For lost or stolen credit cards, dispute must be started as early as possible to easier resolve the matter. Build Your Empire: Starting business at low cost and using credit cards only as needed. It is better to use a credit card under the business name and not under personal name. This will protect holder's credit rating from the additional debt. Save at the Car Rental Counter: Taking advantage of credit cards that offer free "Collision Damage Waiver" coverage.
Proper credit card management is not limited to these six steps. There are other more strategies for holders to make use of their credit cards wisely. Being prompt and timely would help card holders avoid more debt and would also help improve lifestyle.