Four Things You Should Always Do With Your Credit Cards

1. Pay all bills on time

Missing payments is the worst thing any credit card holder can do.  It’s figuratively the credit card equivalent of shooting yourself on the foot.  Apart from making the next bill harder to settle (since it will be worth two months of charges), you’ll end up incurring late charges and compounded interest.  Based on the current behavior of credit card companies, it’s also likely that missed payments will prompt them to raise your APR and annual fees.  Even worse, missed payments create terrible marks on your credit rating.

2. Call them up and threaten to leave

If your credit card does anything unfavorable towards you - from raising your interest rates to charging you late fees - always call to try and have it reversed.  Should they decline, make a threat of cutting up your account.  Credit card companies want to keep as many of their current customers as possible and they’ll bend (just a little bit) in order to retain you.

3. Pay off as much of your balance as possible every month

Interest rates on credit cards are much higher than any other kind of loan.  Keeping a high balance or even any balance of sort will lose you a ton of money in the long run.  If you have an outstanding balance, try to secure a loan with a lower interest rate - your pocketbook will appreciate all the savings.

4. Leave them at home if you don’t plan on using

If you have no intention of using your credit card when you go out, leave it at home.  Credit cards can feel almost as good as cash when you’re window shopping at the mall or enjoying an evening out.  Unfortunately, it’s money you probably don’t have and should not be spending in the first place.