Managing a credit card is like driving. It has rewards and risks. In driving, it is important to follow the traffic signs and rules. Obeying these standards means saving one’s life. This is the same with credit cards. Credit card companies give terms and conditions for every credit card holder to follow. How you follow these terms and conditions will determine how the credit card companies will rate your credit. Following these rules and using your credit card wisely will help you not become a slave to debt.

Credit cards can be rewarding if you use them responsibly. Through credit cards, you can borrow cash or make purchases without cash on hand. You can use special promotions like 0% terms for 6 months without finance charges or interest. A credit card holder can also get free items or gifts in exchange of his/her rewards points. True, this small plastic card has numerous rewards and benefits.

However, this card has also has risks if it is not managed properly.

Remember, when you use your credit card to make a purchase, you are using borrowed money from the credit card company. You need to pay it off fully at the end of the month or you will be subject to monthly finance charges. You also need to make sure you pay your bill on time or you can be accessed more fees.

Having a credit card can also be a big temptation.

If you are an impulsive buyer, then a credit card can become a big problem for you. So, how can this small plastic card become a rewarding thing and not a risk? Considering the following points will help you: Make a list before you purchase. Write on a piece of payer everything you think you may need before you walk out the door to go shopping. Keep your budget in mind as you make your list.

Cultivate self-discipline.

True, it is very tempting to buy with credit cards. Keep in mind that, credit cards are real money. You must learn to control your spending. Misuse of credit cards is one of the easiest and fastest ways of becoming buried in debt.

Every cent is worthy and valuable.

Pay as much as you can towards your credit card balance each month. If you cannot pay off your entire balance, the best thing to do is pay more than the minimum due payment.

Do not forget your due date.

Paying your bills on time will lead to your having a good credit score. Your creditors will see that you are living within your means and paying your bills as agreed. This way, you can be qualified to get better deals when the time comes that you may need to apply for a personal loan, car loan, mortgage or a new credit card.