Page 38 - Book6E

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Plastic Money
Forget the spending limit the card gives you and establish your own based on your budget. Only use the card for major purchas- es or in emergencies.
3. Pay the full balance every month. If you can’t pay the full amount, put the card away and only use cash until you have paid off the balance.
4. Keep good records. Keep all your credit card receipts and com- pare them to your statement every month. Make sure there are no charges on your statement that you do not recognize. If there are, report them to the credit card company immediately. Make sure you have the numbers of your credit cards and keep them in a safe place in case your card gets lost or stolen.
Low-Interest Cards
A low-interest credit card can be the best option for someone who knows he or she will be maintaining a balance. Use the Internet and your new good credit to compare cards and get the best low-interest credit card for you. As many credit cards offer an introductory low- interest rate, you need to look past this to see what your long-term interest rate will be. Consider other fees and penalties when comparing cards.
Credit Card Reward Options
If you are planning to pay off your balance each month, a credit card with a rewards program is probably more advantageous.
1 . Travel: If you like vacations, travel, hotel, and airline mile credit cards can be a good deal. You are rewarded with points when you make a qualified purchase. The points can be redeemed for plane tickets, hotel stays, vacation packages, and car rentals. Be sure to check for hidden fees such as charges if you don't pay off your balance each month, annual fees, late payments, etc. Read the fine print. Make sure you are not spending more for your travel