The 10 Commandments for Credit Card Holders


Anything in life that’s worth taking seriously comes with a strict set of rules, and there are very few things in life that we must take as seriously as credit cards. A credit card can be a key to the realization of all our financial goals, as well as be the reason for our financial downfall. That is why knowing the specific rules to follow in having and using a credit card (and following those rules of course) is a big deal. By abiding to the following commandments, credit card holders can maintain a responsible method of picking and using a credit card and avoid any financial detriment that credit card misuse will eventually lead to.

 Credit Card Holders Have to Choose Wisely

 It always begins with the type of card that credit card holders up for. It is always best to pick the one that suits your lifestyle and payment capability the best. Do not just sign up for the first tempting offer that comes along. Educate yourself and find out as much as you can from as many card issuers as you can. The choice you make at this point in your credit card use is going to dictate how your personal financial situation would be.

Credit Card Holders Thou Shall  Avoid Overspending


Overspending can lead to unmanageable debt

This is hardly worth mentioning, as one would expect this to be obvious. However, overspending is something that all of us have a tendency to do, leading to credit card debt and other financial hassles. Control your spending before your spending controls you.

Don’t Forget to Pay Regularly

 Regardless of how much you owe your credit card company, be sure to always pay in a timely manner. There is no amount of debt that is negligible, and credit card debt grows over time. Nipping that in the bud would be a very smart idea.

 Remind yourself what a credit card actually is

 This particular commandment may sound weird, but there are a number of people out there with the wrong mindset about what credit cards actually are. Remember, just because you are a credit card holder does not mean you actually have money. You are borrowing money, and you are expected to pay what you owe regularly over a monthly period. Keeping this in mind will help you follow commandment number two.

Work on your credit history


Responsible credit card use can help build good credit history

 If this is a new credit card for you, look towards establishing a great credit history. If you have an old credit card, you can work towards using this card to fixing your credit record. A solid credit history would help you in future financial transactions like loans. Be sure to take care of it.

 Keep your credit card safe

 Considering the number of incidents involving identity theft, keeping your credit card info safe should be the first priority. Be careful with such information.

Know what you’re getting into

 Don’t just read the terms and conditions for your card, know and understand them. These terms and conditions may potentially help you out in the future, or at least knowing them would help you prevent any mistakes now.

 Minimize cash advances


Avoid cash advances since it accrues interest on a daily basis

 When you take out a cash advance with a credit card, meaning you withdraw cash, interest automatically kicks in unlike when you use credit. It would be a smart move to minimize, if not altogether avoid this option if possible.

 Say no to store cards

 Store cards often come with tempting offers, but they also come with high interest rates.

Take advantage of Cashback

 Some credit cards have the cashback privilege. Cashback is when you get a particular amount of money back for every specific amount of credit transaction. This is a great option for those who tend to use the card on a regular basis, thus giving them some money back.

Follow these commandments for credit card holders and your path towards responsible credit card use shall be paved. Remember, a credit card is not a privilege, it is a responsibility. Take it seriously.

Author Bio:
Cristina Beltran is a writer, blogger and online marketing specialist at Compare Hero, Malaysia’s leading online comparison portal. Tina is also a freelance writer; she worked as an information researcher before she pursued her writing career.

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