The infamous credit card! I personally believe in the theory that if you can’t make a purchase with cash you don’t need it. But with the world we live in today you need a good line of credit, so that means you need to have a credit card. So I’m going to give you the Do’s and Don’ts of credit cards so that you don’t become another debt statistic.

Don’t:

            -Use credit cards to make everyday purchases. Food, clothing and gas shouldn’t be purchased with a credit card. Treating a credit card like cash will quickly lead you to debt.

            -Making only the minimum payment each month actually increases the amount of time it will take to pay off your debt.

            -Use your credit card to buy things you really can’t afford. “If you can’t afford a purchase today, the chances are you won’t be able to afford it tomorrow, or next month”.

            -Close out an account without knowing the impact it will have on your credit. Sometimes closing a credit card account can hurt your credit score.

Do:

            -Using your credit card responsibly means recognizing which things you need and which you just simply want. Make wise decisions about purchasing items you need.

            -Contact your creditor if you’re going to be late with a payment. No matter what the reason may be, the worst thing you can do is forgo on a payment.

            -Your credit score is affected by the amount of debt you have. By keeping your balances low will in turn help you maintain a good credit score.

            -Always negotiate a lower interest rate. Especially if your current rate is higher then the offers you receive. Evaluate your interest rate periodically to be sure you are getting the best deal possible.

            Before you move forward and finally decide to get a credit card I highly recommend that you do some research and understand what exactly you’re getting yourself into. Just remember that credit cards are a tool, don’t abuse them and always remember the Do’s and Don’ts!!

For some more information on credit cards check out these websites:

http://www.cardratings.com/

http://www.collegeboard.com/student/plan/college-success/9139.html