What Should You Use Your Credit Cards For? Check Out These Great Tips!

What kinds of feelings come to mind when you hear the words "credit cards?" If you are like many other Americans, you probably feel anxious and nervous when you hear these two words put together. This fear and anxiety will pass, however, as soon as you arm yourself with proper information.

Decide what rewards you would like to receive for using your credit card. There are many options for rewards that are offered by credit card companies to entice you to applying for their card. Some offer miles that can be used to purchase airline tickets. Others give you an annual check. Choose a card that offers a reward that is right for you.

An important aspect of smart credit card usage is to pay the entire outstanding balance, each and every month, whenever possible. By keeping your usage percentage low, you will help keep your overall credit score high, as well as, keep a substantial amount of available credit open for use in case of emergencies.

If you are determined to stop using credit cards, cutting them up is not necessarily the best way to do it. Just because the card is gone doesnt mean the account is no longer open. If you get desperate, you may ask for a new card to use on that account, and get trapped in the same cycle of charging you wanted to get out of in the first place!

Use a credit card to pay for a recurring monthly expense that you already have budgeted for. Then, pay that credit card off each and every month, as you pay the bill. Doing this will establish credit with the account, but you dont have to pay any interest, if you pay the card off in full each month.

The credit card that you use to make purchases is very important and you should try to use one that has a very small limit. This is good because it will limit the amount of funds that a thief will have access to.

An important tip when it comes to smart credit card usage is, resisting the urge to use cards for cash advances. By refusing to access credit card funds at ATMs, you will be able to avoid the frequently exorbitant interest rates, and fees credit card companies often charge for such services.

Do not use your credit cards to pay for gas, clothes or groceries. You will find that some gas stations will charge more for the gas, if you choose to pay with a credit card. Its also not a good idea to use cards for these items because these items are things you need often. Using your cards to pay for them can get you into a bad habit.

If you get into trouble, and cannot pay your credit card bill on time, the last thing you want to do is to just ignore it. Call your credit card company immediately, and explain the issue to them. They may be able to help put you on a repayment plan, delay your due date, or work with you in ways that wont be as damaging to your credit.

Exercise

It is an excellent idea to open one credit card account that you do not use. Tuck this credit card away for emergency expenses. Exercise discipline in this matter. Your emergency credit card should only be used in real "last resort" situations. If you ever have to use it, pay it off as quickly as possible after the emergency has passed.

How do you feel about credit cards now? Do you feel more confident on how to use them? If so, then great, but if not, that simply means you need to continue educating yourself. By learning all that you can about credit cards, you will feel better about using them.