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Research: Use credit cards well to keep bad credit at bay -

"Having money to spend" is a slogan many of us live by. Particularly for the youth, this holds true. When you get your first credit card, you may be very tempted to exercise that freedom more than necessary. Spending and shopping to your heart’s content can be fun and using credit cards adds to your spending power. However, it is not the wisest thing to do, especially when you have to pay more than just the amount you spent eventually when paying it off. Consider credit cards to be a sort of privilege that must be exercised very carefully.

There are numerous credit cards available in the market. When using credit cards make sure you are spending using them only when you absolutely need to. Especially for large payments, unless you are absolutely sure you can pay it off do not use your credit card. There will be a lot of additional fees and the interest amounts will simply add up each month till your debt becomes unmanageable. In addition, if you are unable to pay it will take a toll on your credit scores as well.

When you receive a pre-approved credit card offer, do not immediately get excited and opt for it. These pre-approved offers are simply another means of marketing for the banks to draw in the unsuspecting folk. Don’t fall for the rewards and bargains. Make sure that when using credit cards, you know exactly what you are liable to pay. Check the annual fees on the card, how the interest rates are calculated and whether they will vary, the late fees and other financial charges applicable. Knowing how things work with your credit card will make you more careful about spending on it and paying off the amount every month.

Do not ever make the mistake of using credit cards as emergency fund. This is a sure ticket to debt. If you have to pay a pressing bill like at a hospital and have no other way out then go ahead, but otherwise, do think carefully before doing so. Consider going without whatever appliance you were planning to buy. Most of the time emergencies are not really what they seem to be once we take the time to rethink things. The more carefully you do it, the better you can use your credit card on various occasions. Use your credit cards well and be privy to good deals in future.