The Dos and Don’ts in Managing Credit Cards
In the paragraphs below, we have listed things that you should do and not do when it comes to managing your credit card account. Here are 3 dos, 3 don’ts in managing credit cards.
DO pay your credit card bills on time. This way, you won’t be penalized with late payment fees and surcharges. More importantly, you can establish a good working relationship with your card issuer which can help you qualify for cheaper credit card programs, later on.
DON’T make just the minimum payment required by your issuer, or else your interest payments will surely balloon out. Always remember that by paying your credit cards for bad credit unsecured charges in full, each month, you can minimize the payments you make on interest. Moreover, such habit will make it easier for you to juggle your credit card bills with your personal or household expenses.
DO examine your billing statements and credit reports. This is important not only to find out how much you owe your credit cards for bad credit unsecured issuers. More importantly, this tip will give you the opportunity to check if there are errors in your credit report that might pull your score down and ruin your chances of qualifying for excellent credit cards and the best loan packages, in the future. Suppose you find an outdated account, an unauthorized charged or an incorrect payment record in your credit report. What should you do about it? You have to dispute such entry right away, by sending a letter of credit dispute to the bureau that issued your report. Then, wait for the credit reporting agency to complete its investigation on your claim. If it finds out that your credit dispute is valid then soon you will receive an updated copy of your credit file, plus a full report that tackles the results of the investigation conducted by the credit bureau.
DON’T spend beyond your credit limit. Maxing out your credit card will not only cost you overdraft charges and declined transaction fees. It can also cause your debt to limit ratio to rise which will in turn cause your credit score to drop. So, resolve to spend within your credit limit. And try to determine the available balance on your credit card before using it to pay for a purchase or for a bill.
DO keep receipts and proofs of payment. This is because you will never know when you might need them to dispute incorrect information in your billing statements as well as in your credit reports. So, always save ďŹ nancial records and keep them in a safe yet easy-to-access area in your home.
DON’T disclose your credit card information in shopping sites with low security features. More and more cardholders today become victims of credit fraud and identity theft. After all, they don’t heed the advice of experts to check out the security features of shopping sites before disclosing and transmitting sensitive information via the internet. Now, to avoid getting ripped off, we suggest that you look for security indicators in websites before filling out online forms with your credit card information. For instance, look for the code https in the URL bar, the padlock icon situated beside the URL bar or at the bottom of the webpage or for logos of companies that offer accreditation for online security, such as VeriSign, in the webpages you frequently visit.