Set a budget when it comes to your credit cards. Many people think a budget is only for the bills you owe; however, you should also set a budget for credit card usage. Do not consider your available credit as extra income. Determine an amount that you are comfortable charging each month. Stick with it and each month, pay it off. Never pay a credit card bill with that credit card. Some desperate card holders get a cash advance to mail in a money order, thinking they are buying themselves a month to weather an emergency. However, the interest rates, and fees involved with this supposed trick is really just creating an even bigger emergency disaster the next month.
Start reducing and eliminating high credit card balances. Your financial stability and health does depend on a solid credit report. Paying off outstanding credit debts gives the appearance of a responsible consumer and improves your credit score. Set a budget that allows you to pay a little more than the minimum every month.
Be wary of credit cards that offer a zero percent rate. While this offer seems a great deal, overspending is generally the result. Zero percent rates are always temporary. When they expire and a higher interest rate kicks in, people who over-extended themselves will be stuck with an unwieldy amount of debt. Before applying for a credit card ensure you understand the terms and conditions. Fees and interest rates may be more than you feel is acceptable. Read every word of the fine print to be sure that you completely comprehend the policy. Document the contact information and numbers associated with every credit card you have on paper. Keep that information somewhere safe. In the event that you lose your wallet or purse, you will be able to quickly contact your credit card issuers to notify them of the situation. It is imperative that you report any lost cards as soon as you can to avoid paying any fraudulent charges.