Using Credit Cards Wisely

"I think money was stolen from my card" or "I might have blocked my card in the ATM" - these are frequent problems that bank customer-support officers usually hear from agitated clients. Incorrect use of credit cards or wrong interpretations of their functions are frequent even after tens of years of credit-card extensive use. Actually, there are 4 most frequent causes for problems; one is related to overspending, the second is about missing money; this is usually connected to the 3rd problem - unauthorized use and finally there is the issue of forgotten information. All these problems are interconnected and can lead to serious financial problems. However, there are a few simple things that you can do in order to avoid hassle.

First and foremost, remember that your credit card has a limit. When you open a credit line you will be given a certain credit limit that can vary from twice your monthly income to 3 or maybe 4 times that income, depending on past credit history. However, do not spend more than you can pay back. At the end of each month you will have to pay-back the borrowed money and there will be no exceptions from the rule. So lesson number one is "spend within limits".

The second thing you need to do is keep a record of your expenditures. Keep bank statements, receipts and carbons in a safe place and at the end of each month make a calculation of your deposits and withdrawals. If there is any discrepancy between the two, make sure to contact your issuer bank immediately and solve the situation. Most people find out that they have forgotten about a certain payment that was made with the card, yet you may find out more important information than this.

This brings us to the next issue - the unauthorized use of credit cards. This is a wide problem mainly due to theft. It is safe to keep your credit cards in a wallet, separately from any other papers so that you do not lose cards; it is also recommended that you make sure there is no one watching over your shoulder when you type you personal identification number and off course there is the rule of never giving out the PIN to anybody. Unauthorized use is not only related to theft. Young children should never be given the number and/or the PIN of a credit card. If they are still not aware of the value and importance of money you may find yourself paying for useless items or services. So rule no.2 is Never Give out Your PIN.

There are many things we need to remember and keep track of. One of these things is credit card information such as name of issuer, year and month of expiration, credit card number and PIN and the help-line phone number. If you feel there is too much data to memorize it is best to have everything written down and kept in a safe place like a deposit box or your telephone - there are telephones that offer a special notebook feature which can only be accessed by introducing a code and where you can store data safely. Therefore, another thing you need to do is Keep Records of Important Information.

Managing credit cards is not child's play. You will need to keep good track of your money if you do not want to overspend or lose track of expenditures. You also need to learn that your money is your business and thus attention needs to be paid when giving out credit card identification information. Last, but just as important, you need to keep in handy support-centre contact information in case you need to report irregularities or you have questions to ask. Attention and common sense is actually all you need in order to use a credit card wisely.

This article has been provided courtesy of Creditor Web. Creditor Web offers great credit card articles available for reprint and other tools to help you search and compare credit card offers.

---

How Does a Creditor Determine Whether to Grant You Credit?

Credit 101How does a creditor determine whether to grant you... Read More

0% Credit Cards

These days, credit cards in the UK are competing with... Read More

All About Balance Transfers

What is a balance transfer?A balance transfer can be explained... Read More

14 Common Credit Mistakes

Establishing credit and wisely managing your credit becomes easier when... Read More

Understanding Your Rights Under The Equal Credit Opportunity Act

It wasn't all that long ago that lenders blatantly discriminated... Read More

Read and Understand Your Credit Card Statement

Have you ever looked at your credit card statement and... Read More

How To Use Your Credit Cards Wisely

Are you one of the thousands pulling your hair out... Read More

Credit Reports ? Why Your Credit Score is Important

If you have never heard of a FICO score before,... Read More

Compare Credit Card Offers and Reward Yourself

Here's a simple system on how to pay zero interest... Read More

Credit Worthiness

Credit Worthiness is an important business and personal asset each... Read More

Cash Back vs. Rewards Credit Cards

Ah, the sweet rewards of using credit!Not only do you... Read More

Comprehending a Credit Report

Obtaining a credit report is an excellent way to begin... Read More

How A Prepaid Debit Card Can Help You Rebuild Your Credit

Consumers today are up to their eyeballs in debt. And... Read More

Free Credit Report - Really

2005 marks the year that consumers will be able to... Read More

Top 5 Reasons To Check Your Credit Report Regularly

#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More

Credit Cards - The Top 3 Things You Need To Know

Today there are so many different credit cards available, student... Read More

Opting For A Credit Card? Check Out Certain Terms

You've just received a "pre-approved" credit card offer in your... Read More

What Can Happen to You as a Victim of Identity Theft, Facts & Figure

Is identity theft really that serious? Thousands of people every... Read More

Are You The Only One Using Your Name?

Identity theft has become an epidemic. Millions and millions of... Read More

UPS Delivers the Goods, Your Identity

Well now we add CitiGroup and UPS to the Identity... Read More

How To Avoid Becoming A Victim of Identity Theft

With identity theft statistics currently at an all time high,... Read More

Identity Theft ? Who Would Want Mine?

With all my bills who would possibly want my credit?... Read More

Manage Your Credit Wisely

Getting your first credit card is a big deal and... Read More

Choosing a Credit Counseling Company

If you have considered credit counseling as an option to... Read More

Do You Want to Get a New Credit Card at a Great Rate?

1) Do your homework. Applying for and getting approved for... Read More

New Credit Advice: Dont Pay off Those Credit Cards!

Credit needed for real estate mortgage financing differs from credit... Read More

Big Brother Knows Whats in Your Credit Report - How About You?

Whether you are aware of it or not, credit bureaus... Read More

Credit Reports Inside and Out

The Credit Report is like your scorecard in the lending... Read More

Stop Credit Card Offers

You can stop receiving credit card offers in the mail!... Read More

Searching For A Low Interest Credit Card?

These days, people need to very carefully consider what type... Read More

Fixing A Credit Report

Fixing a credit report starts with seeing what's on it.... Read More

Credit Repair Scam - How To Avoid Being A Statistic?

A good credit history is critically important for the consumer.... Read More

A Debt Mentality

While working through my own debt situation, and helping others... Read More