Tips for credit card usage

By Ben Woolsey

There are many advantages to having a credit card such as being able to purchase items online and make hotel and car reservations. The way you handle your purchases should be taken seriously. Following are a few tips and suggestions about credit cards.

• Credit cards are just like a loan -- you have to pay what you owe -- so try and not overcharge more than you can afford to pay.
• Keep track of how much you spend on your credit card. Remember that incidental and impulse purchases add up fast.
• Save your credit card receipts. Compare them with your monthly bill. Promptly report problems to the company that issued the card.
• Never lend your credit cards to anyone.
• Owing more than you can repay can damage your credit rating. That can make it hard to finance a car, rent an apartment, get insurance or even get a job.
• Pay your credit card bill on time, and in full when possible. If you don't, you'll have to pay finance charges on the unpaid balance-and it takes forever to get caught up if you just pay the minimum.

Federal law limits your liability for unauthorized charges to $50 per card.

Published: August 5, 2005

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