Use Credit Wisely
  • Do not get into the “charge it” habit, especially if it adds to your problems. Learn to pay cash or write a check. It helps to keep you honest with yourself.
  • Always ask yourself: “Do I really NEED this item or service?”
  • Use a credit card for wise purchases over $25.
  • Pay off credit cards every month to avoid paying interest.
  • Plan your life; don’t just let it happen. Use your credit cards as a convenience not as a financial crutch. Saving regularly for emergencies, trips and desired purchases will free up your credit card for opportunities and major purchases that you can repay in 3-5 installments.
  • Do not use one credit card to make the payment to another.
  • Carry one credit card, good for virtually anything, if you feel it necessary to have one.
  • Limit yourself to a maximum of 3 cards – one universal card; one gasoline card; one department store card.
  • Consider using a debit card with a MasterCard or VISA logo. These cards are accepted like credit cards but funds are deducted from your checking account balance. Do not forget to deduct debit card usage from your checking balance.
  • Check your credit card statement monthly and be aware of how much of your payment is being wasted on interest charges.
  • Make every effort to pay more than the minimum payment, by at least $1 every month in order to save on interest charges and length of time to repay the debt.
  • Do NOT put purchases on a credit card unless the amount is within your pre-planned monthly spending limit.
  • Do NOT consider a credit card as your emergency fund.
Reduce Credit Rate
  • A five-minute phone call to the credit card issuer could save hundreds, even thousands, of dollars in interest charges.
  • Why are card issuers so willing to cut interest rates for so many of their customers? For one thing, competition in the credit card industry is fierce. If the person has been a good customer, a card company is going to want to hang on to them.
  • The following sample script will help when speaking to a representative regarding credit card rates: Hi, my name is [Your Name]. I am a good customer, but I have received several offers in the mail from other credit card companies with lower APRs. I want a lower rate on my card, or I will cancel my card and switch companies.
  • And that's it. Even people who dread confrontations ought to be able to handle that. You only need to be assertive for a matter of seconds. Be persistent and make it clear that the account will be closed if the interest rate is not lowered. Keep the request simple. Ask the representative what they can do to help out. Ask them if they can do any better.
  • If the card company won't budge, it's time to start looking for a better deal. You must be prepared to move your account if the card company doesn’t comply with your wishes.
  • Not everyone who asks is going to get a lower interest rate. But long-time customers may have a better chance than newer customers.
  • Newer customers with higher balances may have a tougher time getting their interest rates knocked down. But it's still worth a shot and well worth a five-minute phone call.
Protecting Credit Card Information
  • Endorse all credit cards with your signature when the cards arrive, and request that the company check identification when the card is used.
  • Keep a record of credit card numbers in a secure place. Include the expiration date, phone number, and address of the card issuer in that record.
  • On occasion, check your cards to ensure none are missing.
  • Request the credit card back promptly from salesclerks.
  • Unless you are dealing with a company you are familiar with or have done business with in the past, be cautious about providing credit card information over the phone.
  • Memorize your PIN, and do not keep it with the credit card.
  • Destroy voided receipts immediately.
  • Check the bills against receipts to ensure you were charged the correct amount.
  • If not using a credit card, close the account and destroy the card. (Note: This action may affect your credit rating. Refer to the Credit Reports module.)
  • When on a trip, carry the name of the issuer, account number, and the toll free number of the issuer in a secure place.