Thursday, February 19, 2009

With the present economic crisis, I urge all of you people out there to be careful with your credit. Credit cards are a double edge swords. Using it effectively will allow you to spend less and get interest free deferred payment. However once you start to default, the problem starts.

Here is a simple check list that everyone should watch out when getting a credit card. ( taken from the website)


Stop charging additional purchases. Use only in emergencies.
If you can eat, drink, or wear it - don't charge it!
Pay balance in full monthly. If this is not possible, try to pay more than the minimum payment due in order to reduce your balance and stop using the credit card until the balance is paid in full. It is a loan which must be repaid.
Don't ignore a credit card bill; it won't go away!
If your payments begin to fall behind, talk to a school counselor or friend and contact the credit card institution.
Don't panic! Go to someone for help!
Ask lots of questions (fees, grace days, etc.) and shop around for the best interest rates.
Don't fall for gimmicks and don't take the first card offered.
Limit the number of cards.
Don't get more cards to pay off debts!
Watch for limit increases.
Don't spend the maximum offered - it all adds up!
Ask for low credit limits.
Don't accept a card if they will not lower the credit limit.
Pay on time. Allow enough mailing time for the payment to reach the financial institution by the due date.
Don't pay late - some late fees are as high as $25.

To avoid identity fraud, review your monthly statement for accuracy.
Don't throw away your receipts until you compare them to your statement. Then shred them.

Sometimes we get so caught up with our temporary purchasing power that we forget to think about the long term. Look far,plan ahead!
You will not regret it! =)


Mozart said...

I personally is holding on to 3 debit cards now. I think it works similarly to credit card. Soon I'm going to cancel one of the NOW debit card because I don't find it useful at all. I also saw that there is a $16 admin fee if I don't use $2000 payment by credit card by 1 year. Cancelling debit card is as easy as signing up for one. So just call the number on the debit card and cancel it. It's not that difficult. My rationale is to get enough cards that I need. Don't just anyhow sign up.



Nice and interesting