Credit Card Tips

5 Tips for Credit Card Management and On-Time Payments

While a credit card can be an exceptionally useful and convenient tool, some consumers fail at credit card management and wind up drowning in excessive debt. One of the easiest ways to avoid accumulating too much debt is to stop making late payments. Late payments are one of the easiest ways for credit card companies to make a profit from their customers. Late charges, often quite expensive ones, are applied to the customer’s account. These late charges are incorporated into the existing principal balance, and this means that the late charges themselves will start to accrue interest each month. If you are having trouble making on-time credit card payments, here are a few tips that may help.

Create a Payment Calendar

The easiest way to remember about a credit card payment is to organize a payment calendar for yourself. If you have a smart phone or a mobile device with a calendar application, you can create due dates for different credit card bills. You can even set up the device to give you an alert or alarm when a payment is due.

Set Up Automatic Payments

If you have a bank account with bill pay services, you can set up your account to make automatic payments on the credit card payment due date each month. Some credit cards even have recurring payment applications that will make an automatic withdrawal from your bank account a day or two before the due date. If you can afford to do this, it’s an easy way to guarantee that you never miss a payment.

Don’t Spend More Than You Have

If you truly want to avoid missing a credit card payment, be sure to spend less than you have in the bank. Many consumers believe that this defeats the purpose of having a credit card, but if you only charge what you have in the bank, you’ll never be caught at the end of the month with insufficient funds to cover minimum payments.

Set Limits below Credit Limits

Even if your credit card limit is quite high, try setting a personal limit for yourself that is below the limit on your credit card. This will help to prevent you from maxing out a credit card and experiencing monthly payments that are too high.

Have a Credit Card Management Partner

If you’re still having trouble making on-time payments, you might consider asking a friend or family member to help keep you accountable.

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Are Credit Card Companies Out to Get You?

Credit card companies are not out to get you. In fact, most credit card companies are honest and have a great deal of integrity. They offer a service to customers and may even offer valuable rewards like complementary airline miles.

Credit Card Companies are Profitable Businesses

It’s true that credit card companies are profitable businesses, but so are hospitals, dentist offices, grocery stores, banks, investment firms, and even the United States post office. A desire for profit is not a sign of corruption. Credit card firms aren’t trying to milk the economy dry. They are simply made up of executives and shareholders looking to create a successful business.

Credit Card Firms Thrive on Good Customer Relationships

Credit card businesses would not be able to thrive if they relied on wrecking customer lives and leaving them bankrupt. In fact, credit card enterprises make a profit when they establish long-term customer relationships where both parties are satisfied. That’s why so many credit card companies offer valuable perks and rewards to customers like airline miles.

Credit Card Organizations are Often Patient and Flexible

There is a misunderstanding that credit card organizations are cold and inflexible, demanding payment on time, every month, with no exceptions. This could not be further from the truth. Many credit card companies have programs to reward reliable customers. If the unexpected comes up and you need to skip a payment, your credit card company will likely work with you.

Credit Card Companies Will Work With You to Get You Back on Track

If the worst happens and you do fall behind on your credit card payments, the credit card executives aren’t just going to sit back and start laughing about your misfortune. When your credit card is maxed out and you’re no longer able to use it for purchases, the credit card company is actually losing the chance for profits. For this reason, credit card companies will often do their utmost to get you back on track and work with you to create a reasonable payment plan. As long as you stay in communication with your creditors and attempt to make payments on-time, you shouldn’t have any trouble working with your credit card company.


Many consumers think that credit card companies are villains out to steal their money and walk away with massive profits. While credit card companies are profitable businesses, they are actually just trying to provide a service to consumers.

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Are Credit Cards Really the Danger That People Claim?

Many consumers have misunderstandings about credit cards and credit companies. Credit companies often receive a bad rap from individuals who have accumulated huge amounts of debt and then have trouble paying off this debt. Financial advisors who deal with irresponsible consumers often suggest that individuals never seek out credit cards because they are dangerous and unpredictable. However, there is a huge population of consumers that uses credit cards responsibly and never experiences any problems with their credit card companies.

Credit cards are tools that must be used with integrity and responsibility. An automobile can be very dangerous when driven by a person who isn’t paying attention or acting responsibly. However, the actions of irresponsible drivers shouldn’t cause us to label all automobiles as dangerous. Here are some common myths associated with credit cards.

Myth: Excessive Debt is Guaranteed with Credit Cards

Many people mistakenly believe that a credit card automatically guarantees excessive and unaffordable debt. This, however, is not the case. Individuals who budget for minimum monthly payments and monitor their debt accumulation responsibly are perfectly capable of paying off a credit card in a timely manner. Some credit cards do have large interest rates, but many credit card companies offer reduced interest rates for responsible behavior and on-time payments.

Myth: Credit Cards Destroy Your Credit Rating

This myth is 100% false, and yet it is held by consumers throughout the world. Having a credit card does not negatively affect your credit rating. Your credit rating is destroyed when consumers with credit cards fail to make on-time payments. In fact, paying a credit card on time each month can actually improve your credit rating over time.

Myth: Credit Card Companies are Dishonest and Greedy

Many consumers assume that credit card companies are greedy and dishonest, but this is not the case. Credit card companies, like most other businesses, provide a service to you in exchange for a profit. Credit card companies don’t want to ruin your life or that of your loved one. They actually hope to develop lifelong customer relationships.

Myth: The Offered Perks are Never Worthwhile

Some consumers believe that the offered perks and rewards that come through credit cards are never worthwhile. However, some credit cards offer airline miles and other benefits that are valuable. It is the customer’s responsibility to read the information about perks and rewards and determine whether or not they will benefit from these offered benefits.

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5 Ways Consumers Can Benefit from Credit Cards

A credit card is often described as a frightening or dangerous financial solution with nothing but negative effects on a consumer’s life. While credit cards do have a lot of negative connotations and risks, there are benefits from credit cards usage. The trick, of course, is to use credit cards responsibly. Paying off as much of the credit card as possible each billing cycle will keep consumers from drowning in debt. It’s also important to never borrow more than you can afford to pay back. Here is how you can benefit from credit cards.

Purchase Investment Items and Pay Long-Term

First, a credit card allows consumers to purchase items and spread the payments for those items over a longer period of time. Many consumers use credit cards to purchase expensive items such as appliances or electronic devices. Instead of having to pay the full price upfront, you can charge the item and pay for it over the course of several months.

Have Security in Emergencies

Credit cards can also provide security in emergencies. Injuries, illnesses, damage to homes, accidents, and other emergencies are often quite expensive. With a credit card, you’ll be protected in all circumstances.

Build a Solid Credit Score

If you use a credit card wisely, you can actually build up your credit score.  A high credit score is necessary for purchasing a house, an automobile, or other large items. Regular payments to a credit card company will boost your score. You stand to benefit from credit cards with responsible usage.

Learn Effective Money Management

Credit cards can also help consumers learn the skills associated with effective and responsible money management. Creating a budget and making on-time payments are crucial life skills that will serve you well throughout life.

Earn Bonus Items and Rewards

One of the least-known ways that consumers can benefit from owning a credit card is through the perks and rewards that many credit card companies offer. When you use your credit card to make purchases, many credit card companies give cash back, reward points that can go to further purchases, or even credit card airline miles. You can redeem these miles and fly for free to a destination of your choice.

Benefit From Credit Card

Credit cards must be used responsibly, but they aren’t always negative. Irresponsible credit card users will find themselves overwhelmed by debt, but if you use a credit card effectively, you can actually achieve all of these incredible benefits.


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5 Credit Card Tips that will Help Consumers Avoid Excessive Debt

While credit cards can be a great way to prepare for emergencies and spread out the cost of big purchases over a longer period of time, excessive debt can be a real problem for consumers with credit cards. These credit card tips will help you avoid excessive debt.

Create a Budget

The easiest way to avoid getting overwhelmed by excessive debt is to create a strict budget and stick to it at all times. If you cannot afford to purchase a large item and incorporate monthly credit card payments into your budget, then you should not purchase the item. A budget is a guidebook to financial security. With a budget, you can see precisely where your money is going, and you can avoid accumulating too much debt.

Never Use Credit Cards to Pay Recurring Bills

One thing to avoid with credit cards is using a credit card to pay recurring bills. If you use a credit card one month to pay a monthly bill such as your electric bill, gas bill, or rent payment, you’ll have to pay that same monthly payment next month in addition to a minimum credit card payment. The credit card tip here; credit cards should be reserved for special monthly purchases that fit within your budget.

Make More than the Minimum Payment

If you can, try to make more than the minimum payment each month on your credit card. Paying more than the minimum will chip away at your credit card debt and help you pay off the credit card more quickly. Even a few extra dollars each month can go a long way in reducing total debt. It will also significantly reduce the chances of surcharges such as late payment fees and penalties.

Save for as Much as Possible

While it’s tempting to use a credit card to purchase items right away, you should try to save for them as much as possible. If you plan on purchasing new appliances, new electronic equipment, or even a new car, saving for the total cost is preferable to racking up excessive credit card debt.

Credit Card Tips #5 – Avoid Late Payments

One simple way to avoid excessive amounts of debt is simply to make payments on time. Late payments add late charges to your account balance, and these charges are added to the principal amount of your debt. This means that late fees will accrue interest just like the regular amount charged to your credit card. If at all possible, make payments on time. You can set up recurring debit payments or direct bank account withdrawals to ensure that you never miss a payment.


Credit cards are only dangerous when used irresponsibly. With these credit card tips you can steer clear or any major credit card debt, and instead enjoy the benefits.

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4 Common Credit Card Dangers and How to Avoid Them

Credit Card Dangers

A credit card is an attractive idea for many individuals. You can pay for the items you need or want without actually having the money in the bank. While credit cards are convenient and beneficial, they can also be problematic if used irresponsibly. Here are some common credit card dangers and steps to avoiding them.

Maxed Out in a Hurry

Maxing out your credit cards within a few short months may result in a massive monthly payment that you simply can’t afford. It’s a good idea to use your credit card slowly and methodically. Some people set personal limits well below their credit card limit, and they may even decide to pay off the balance completely before using it again.

Multiple Credit Card Problems

Opening multiple credit cards can also be problematic for the inexperienced credit card user. Too many credit cards can get confusing and complicate the repayment process.

Missed Payments and Late Fees

Missing payments is one of the most common credit card danger consumers fall into. Every time you miss a payment, you’ll be penalized with late fees and hidden charges. These charges may even be added to the principal amount of your credit card. If you rack up excessive late charges, any perks such as airline miles may be removed from your account as well.

Sudden Jumps in Interest Rates

Another credit card danger that often catches consumers unaware is a sudden increase in one’s interest rate. Interest rates are very important in determining how much money you will be required to pay your creditor each month. Many people pay more in interest than they originally charged to the credit card. If your interest is advertised as quite low, you might think you’re getting a great deal on a line of credit.

However, the fine print may reveal that this low interest rate only applies to the first few months of service. After this trial period expires, and after you’ve accumulated a great deal of debt on the card, the interest rate can spike and you’ll be slammed with payments you simply cannot afford.


A credit card doesn’t have to be the kiss of death for your bank account. You don’t have to struggle to make payments or flounder in a pool of overwhelming debt. If you use credit cards responsibly and avoid these common credit card dangers, you can have a line of credit that will actually improve your financial outlook and add to your sense of financial security.


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