Advantages of Good Credit

Good Credit Cards To Have In Your Wallet Having a good credit card means having a lot of responsibility. If used wisely, a good card can help you build up and keep a nice line of credit, one that will serve you well years down the road when you are ready to purchase a house, a car, or some other valuable item.  Abuse of your credit card could put you deep in debt. If this happens, your credit score will suffer.

Who Needs A Platinum Credit Card Getting your first platinum card get be an exciting experience.  All the joy the world will not pay the bills it generates, however, so it pays to not accept just any credit card because the guy driving the Mercedes has one.

Points To Remember

  • * Keep track of how much you spend on your credit card by writing down all of your transactions, including ones that you make online or through an ATM.  When your monthly statement comes in, compare it to the journal of transactions you have made to make sure there are no discrepancies.  If you find any, contact your lender right away.
  • * Do not exceed the limit on your credit card by always being aware of what your “available credit” is.  This is how much you have left to spend on your line of credit.  If you are unsure how much you have, take the credit card credit limit and subtract any outstanding balance from it and then any outstanding receipts.  This will tell you your available credit.
  • * Never let your credit card debt become more than 20% of your yearly salary after taxes and never let your credit card payments be more than 10% of your monthly salary after taxes.
  • * Keep an emergency credit fund of about 15% of your available credit card limit available in case of emergencies, such as a vehicle breaking down, loss of job or sudden illness . This will help you keep from having to borrow more money and go deeper into debt.
  • * Always make your minimum monthly credit card payment (more if you can) and make them on time.  Never skip a payment.  If you have to, mark due dates on your calendar to remind yourself.
  • * If you have a problem paying your credit card due to loss of job or illness, call your lender right away and see if the lender will work with you to set up alternate credit card payments.

Credit Card Fever If you want to make sure that your credit remains in good standing, then make your credit card payments on time all the time.  This really is the key to your success.  If you can do this, and never skip payments, then having a credit card will be good for your credit score.