Charging it Can be Good – in Certain Cases

Single Mom Financial Help

This article, entitled Charging it Can be Good – in Certain Cases comes from

One of the ways to keep your credit in good standing is to make regular and on time payments to the credit card company to avoid paying extra fees and interest. A lot of single moms who are struggling to repair credit often feel that the best option is to avoid buying on credit at all. It’s true that letting credit card debt accumulate will cost you extra money in the long run, but using the credit card wisely can actually save you money.

The trick is to pay off your balance every month so that fees and interest don’t eat up the money that you will save by putting the purchases on your credit card. If you know that you’ll be able to pay the bill in full when the monthly statement comes, take advantage of savings offers by pulling out the plastic in some circumstances.

If you have a membership that you make monthly payments to, you may have set it up to be automatically be paid from your checking account. If you change your mind and want to cancel the membership, there is often a time lapse before the company actually stops taking the money from your account.

If you put the recurring payments on your credit card instead, you have an extra layer of protection from the companies whose customer service departments are lax about stopping these auto payments. If you see that a company has charged a payment to your credit card after you have told them to cancel the service, call the credit card company to have the amount rescinded.

If you’ve saved up enough money to take a trip, you can often take advantage of incentives by putting the travel expenses on your credit card. A lot of times insurance that covers lost luggage, car rental insurance and even insurance to cover accidents while you are on your trip is free when you charge the expense. Put the hotel on your credit card, too. It could mean that you’re covered if your possessions are stolen from the room.

When a company accepts credit card payments they have to agree to the policies set up by the credit card company. If you have paid for a service or product and find out that it did not live up to expectations, call the credit card company if you don’t get satisfaction directly from the provider of the goods or services. They can often assist you by demanding that source prove that they gave you the services you promised is a way that you were satisfied with. If not, they can charge back the disputed amount from the company and credit it to your account.

It can’t be said too many times that these tips will only work if you can pay the credit card off on time and in full during each billing cycle. A partial payment will leave you paying interest on the balance owed and end up costing you money. A late payment, even if it covers the entire bill, will leave you with additional fees and added interest, defeating the purpose of using the card instead of the cash you had set aside for the purchase. This is a great financial solution to consider.

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