Credit Card Tips

Don't put yourself in debt

Do you pay off your balances every month? Probably not. Most people don't and that is why credit card companies make so much money. Credit cards have many very useful purposes but its easy to not think of them as cash. One good way of looking at it is to take the amount of the purchase you intend to make and add about 20 percent to it.

• If you've been using credit this way, start thinking about your credit card purchases as if you were buying with cash. If you can't pay it in 25 days, don't buy it.
• Credit cards are okay if you use them for safety or convenience.
• Don't use debit cards, particularly for online purchases. They may help you avoid using credit, but thieves or errors can drain money directly from your checking account.
• If you don't carry a balance, get a card with no annual fee and a 25-day grace period between the day of the purchase and the day the interest meter starts running.
• If you frequently carry a balance, get a card with a low interest rate. The annual fee matters very little.
• Don't carry more than two or three credit cards. They're unnecessary and can cost you up to $50 per card if they're lost or stolen.