Learn Good Credit Card Habits Now

Online, February 27, 2011 (Newswire.com) - Most people, if asked, can give at least half a dozen reasons why it makes sense to carry plastic instead of cash. Convenience, frequent flier miles and boosting your credit rating are the three top reasons.

But credit cards are only advantageous if used correctly. It's no secret that credit card debt has emerged as a significant financial concern for millions of cardholders. Getting out of credit card debt is an arduous task. Avoiding it in the first place is the way to go. But to do so, you have to follow a few simple rules.

• Choose wisely. Frequent flier miles or cash back on purchases may come at a high price. Find out the annual percentage rate, and see whether the rates are fixed or variable. You should also make sure you know what the grace period is and review all fees, especially transaction fees. Look for other charges, like special delinquency rates. Read the fine print.

• Establish good credit card spending habits. How you think about and use your credit cards are primary factors that will determine whether or not you end up in credit card debt. A credit card should be a convenient means of spending money that you have readily available. It's not a free pass to spend money you don't have or will be borrowing.

• Pay your balance each month. If you can't, put the plastic away until the following month when you can get caught up.

• Keep good records. Keep all your credit card receipts and reconcile them with your statement each month to see if there are charges you don't recognize. If there are errors, report them to the credit card company immediately. You should also make sure you have all the numbers of your credit cards in a handy place in case a card is lost or stolen.

If you can get into good credit card habits early on and stick with them, you will avoid having to dig yourself out of credit card debt later on.