Credit Card Tips: Be Smart With Your Credit Cards

Set Yourself Up for Credit Success with 6 Credit Card Tips

Credit cards are viewed as a  necessity of modern life, and by following a few credit card tips, they do not have to be viewed as a necessary evil.  As a bankruptcy attorney, I often see the problems that arise from the misuse and overuse of credit cards.  Often the misuse and overuse of credit cards is a result of a sudden job loss or an unforeseen health crisis.  In these situations, credit cards can help you pay bills, fix vehicles, and make due until you can recover from your illness, or find another job.  However, if the cards have been misused prior to the emergency, then you have begun to dig a massive financial hole that is very difficult to bring yourself out of.  Here are some credit card tips to help you wisely manage your credit card debt, so you can avoid the financial pitfalls.

1. Avoid Annual Fees:  When shopping for a credit card look for cards with no annual fee, or as small a fee as you can get.  The fee to use the card is pure profit to the credit card company and of no value at all to the consumer.  Fees are now capped at 25% thanks to a government program designed at taking much of the burden of credit card debt off of the average American citizen.
2. Cash Advances:  Credit cards charge huge penalties and fees when you obtain a cash advance on your credit card.  Penalties usually include a higher interest rate applied to the amount advanced, which can cause your total balance owed to become very difficult to pay off, even if you are paying more than your minimum payment amount. Be careful!  Credit card companies work very hard to make using the cash advance option on your credit card as convenient as possible; because it makes them lots of money.
3. Your Credit Score: Your credit score is intimately tied to how you utilize credit.  When you have a high balance compared to your credit limit, it looks bad. Experts advise not spending more than 30% of your credit limit at any given time to maintain good credit.
4. Avoid Paying The Minimum Payment Amount:  If you consistently pay the minimum balance due every month, you end up paying much more.  In the end, the interest causes you to pay much more than you have actually charged on the card. Always pay twice or triple the minimum payment amount if you are able, in order for you to be debt free in less time.
5. Read the Fine Print Before a Balance Transfer:  Some offers seem like a great idea; move high interest balances to low or no interest credit cards in order to save on interest paid. However, some cards have fine print that states the rate will rise to much higher than the introductory rate after the promotional term is completed. Be careful and read the agreement!  If an offer seems too good to be true, it probably is.
6. Don’t Pay Late: The internet gives you the ability to monitor your credit and pay your bills on-line, 24 hours a day, 7 days a week.  Take advantage of these tools.  If you have the money, pay the bill on time to avoid paying late fees and interest.  If you do not trust you will have a full payment available when the payment is due, pay a portion of the payment each pay period.  Paying on-time is one of the best things you can do to for your credit.

If you follow these 6 simple credit card tips, you will set yourself up for a better credit score and more control over your finances.  Make smart choices and educate yourself about your financial health. Are you concerned that your credit card debt is too big to tackle on your own? Have you experienced a recent set-back? Contact me for a free in-office or telephone consultation.   Let me help you gain your fresh start for a new tomorrow!   Contact me today, Attorney David Smith, the Ohio State Attorney, at (937)-318-1529, or use the contact form below.