How To Manage Credit Cards - "Keep It In Your Pants!"

Many people have a hard time trying to manage credit cards, but it can be done. Learn to use your credit card smarter and you will be on your way to better money management.

Once you get a credit card, you’re lured to get more from the constant credit card applications sent to your door. After a while, you’ll be an expert at trashing these envelopes without even opening them (Remember to always be careful when throwing away this type of mail; some of these letters may include personal info about you that you may want to take notice to; identity theft is an issue you’d rather not get involved with).

To learn more about avoiding identity theft, click here

Multiple credit cards are an easy way to attract debt. It is incredibly easy to manage credit cards when you only have one or two cards. Department stores, gas stations, and other retailers are always trying to promote their card to you, but don't give in. It is way too hard to manage dozens of credit cards.


Another mistake people make, is they don't know their options of credit cards. It is important to be aware of the different types of credit cards there are. To learn more about the different types of credit cards, click here.


Fees and Interest Rates Galore!

An important step to properly manage your credit cards is to learn about the different fees and interest rates your cards are costing you. These rules will help you pay the lowest fees and interest rates, and ultimately will help you manage credit cards like a pro:

• Rule #1: Never pay an annual fee of more than $20, unless you have a gold card.

• Rule #2: Know what the grace period your card is on. The average grace period is 18 days.

• Rule #3: Don’t pay out of control interest rates. You should definitely find credit cards with interest rates under 15%.

• Rule #4: Never take a cash advance. There are nasty fees that your credit card will charge you with right away (regardless of the grace period).

• Rule #5: No two-cycle billing!! The penalties incurred if you fall behind on your credit card with these billing methods can really burn you (even if you pay off your card every month on time beforehand).




"Keep It In Your Pants!"

Ultimately, the better you are at managing your cards, the better money management skills you have. Sometimes the best way to use your credit card is to keep it in your pants! Just because you have a credit card, doesn’t mean you have to use them on the things you don’t need.

A great way to efficiently manage credit cards is to only use them in certain situations. For example, use them in emergency situations. This is when credit cards really can save your life. If you find yourself in a situation that you weren’t prepared for, such as your car breaking down on a long trip, you can use your credit card to bail you out.

Other great uses for credit cards:

• Shopping online or from a catalog

• Renting a car

• Reserving a plane ticket

• Automatic Payment Plans (although most let you use your checking account)

If you understand these basic ideas, then you're already way ahead of the game.

Using credit cards on anything that depreciates (clothing, gas, shoes, food, etc.) should be avoided. Cash is pretty solid, and you never have to pay anything back. Debit Cards are a good way to avoid having to carry cash. Learn more about debit cards here.


Let Your Credit Work For You

Once you start to manage credit cards like a pro, you’ll have to be aware of your Credit History & Credit Score. Your credit report contains much personal and specific information that affects your life in so many ways. Learn more about Credit History & Credit Score here.


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