Advantage You!

Beware! In the following lines it will be suggested you can use credit cards to your advantage. If you are committed to financial stability, there is no reason you cannot use credit cards to your advantage.

Many credit card critics believe using credit cards leads to overspending because you don’t actually experience your money being spent in a tangible way. You can curb this psychological pitfall by reviewing your monthly statement thoroughly or utilizing the credit company’s online account services to monitor your purchases daily or weekly.

Get a Credit Card

Start by picking the right credit card. You will want to look for a credit card without an "Annual Fee." Not every credit card company will offer this benefit, but if you do your research you will find a few out there. Once you find several credit cards offering a true “No Annual Fee” it’s time to check the credit cards for the best APR, or "Annual Percentage Rate." The average APR is between 14 and 15 percent. If you've already established good credit, you should be able to obtain the average percentage rate or, possibly, an even lower rate. If you are just now establishing your credit, though, you can expect a higher interest rate until a satisfactory credit history has been established.

Charge!

Once you receive your credit card in the mail, you will need to activate it. Activate your credit card immediately. Losing a non-activated credit card is an open invitation to identity theft. Now you are ready to charge. Do not begin by charging every purchase you make! Carefully choose one or two purchases you would normally make, and then use your credit card for those. Gasoline purchases and online buying activity are good places to start. After a few months of judiciously managing these smaller purchases, you can expand your purchases as you feel comfortable. Just remember—be conservative! Do not overspend, and always pay off your balance every month!

Review Your Statement

It is very important to commit to reviewing your credit card statement every month. This habit is especially important if you are making online purchases. Always look for purchases you did not make. If you find an unauthorized purchase, call your credit card company immediately and have the spurious charge removed. When you receive your monthly credit card statement, take the time to inspect it thoroughly. You can use your statement to track your spending. Compare your spending with the amounts you have budgeted. Do the two amounts match?

Adding a Credit Card

Adding a credit account can help improve your credit score, but keep in mind that having too many accounts can actually hurt your credit score. After opening your first credit card account, wait 6-12 months before opening another and do not carry more than three open accounts at any one time. Remember, you are trying to improve your credit score. You want to appear, on paper, a reliable borrower. Always look for the most advantageous offer you can find, just like you did when you went shopping for your first credit card. See the "Get a Card" section above.

Credit cards are an enormous responsibility. Almost half of credit card users carry a balance from one month to the next. The best way to establish yourself as a good borrower is to be conservative with your credit cards. Do not overspend! Stick to your normal spending habits and avoid adding items just because it’s convenient to do so. Above all, pay off your balance on each credit card every month!

Charge responsibly! YourCreditCompany.com wants you to achieve optimum financial balance and security. By following the simple steps outlined here, you can establish and maintain a satisfactory credit score and achieve financial balance!

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