Credit Card Usage Tips

The Credit Card Commandments
From first time credit card holders to seasoned buyers, there are certain things that every credit card holder should know. These credit card commandments should be learned and used throughout the life of the credit card. Using the credit card commandments can keep lower the amount of debt that people are facing, while maintaining the credit rating of the card holder.

Never miss a monthly credit card payment. Missing a credit card payment can lead to higher interest rates. Many cardholders are not aware that missing even one payment or having one or two late payments can bring the card holder up to the next tier of interest rates. Most credit card companies have three tiers of interest rates, and depending on the credit rating of the card holder, a group is established. Late payments, missed payments and defaulted balances can lead to interest rates of up to thirty percent.

Don't spend more than you can afford. Although this may seem like a basic credit card commandment, customers don't seem to get the hang of this one. Spending more than you can afford can lead to unmanageable credit card debt and high minimum monthly payments; especially if the credit card offers keep drifting into your post office box. Control spending by maintaining high levels of self control and low credit limits. Has the credit card company raised your credit limit? Take advantage of this time to reverse the actions, if you feel you can't curb the spending.

Maintaining a balance can lead to trouble. Maintaining a balance on a credit card means that you are going to pay interest for each month this balance exists on the card. Credit cards are low cost convenience tools, if, the purchase is paid within the grace period. Grace periods of purchases range from twenty to twenty eight days, depending on the type of credit card and the issuing company. Many card holders wonder about the best time to make a purchase to maintain the optimum repayment time, purchases should be made after the monthly statement has arrived.

Maintain an optimal credit rating to become eligible for lower interest rates and special offers. Those potential customers and card holders that have the lowest interest rates are most likely to become eligible for special offers such as 0% APR balance transfers and the lowest interest rates. Ensuring that monthly obligations are met, on time, and payments are not missed could see you on your way to the highest credit rating.

Although two out of three credit card applications are rejected, smart credit use can lead to offers being sent to your post office box regularly. Smart credit use demonstrates to potential creditors your worthiness for credit, should you follow these simple credit card commandments.

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