Tag Archives: credit cards

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How to be Responsible with Your Credit Card

Credit cards have their benefits – building your credit score, earning rewards, convenience and more. They can also be dangerous if not used correctly. Since people often tend to spend more using credit cards rather than cash, it’s easy to get in over your head without realizing it. Keep reading to find out some great ways to be responsible when using your credit card. 

Don’t Spend What You Can’t Afford 

Just because credit cards allow you to buy things without having the money doesn’t mean it’s a good idea. Trouble, debt and stress all start building up when you realize you can’t pay for what you spent. The easiest way to stay out of credit card trouble is to simply never make purchases you can’t afford at that moment.  

Pay on Time 

Building good credit comes down to paying your credit card bills on time so lenders can see you are reliable. Do this by always paying your bill before it’s due so you’re not scrambling to pay at the last minute, as well as avoiding late fees. 

Go for Low-Interest and Low-Fee  

Before even getting a credit card, make sure you read the cardholder agreement to see what you’re signing up for. Look for a credit card with a low interest rate as well as a low annual fee so you can make the most of the credit card you use. 

Don’t Go Over Your Limit 

Over limit fees can sneak up on you if you’re not careful. Going over your limit can lead to charges and can hurt your credit rating as well. Make sure you know your limit and are staying well under it, so you are prepared for emergencies. 

Get Fraud Protection 

Credit cards can be hacked, but the good news is that credit card fraud protection is available. This way, if your card is hacked, you don’t have to pay for those charges. 

Ask for Help Right Away 

If you’re struggling with credit card debt, reach out and get help before it gets worse. There are many people you can talk to such as finance professionals, credit counselors or your bank. These people can guide you in the right direction so you can take steps towards avoiding, getting out of and staying out of credit card debt. 

While using credit cards irresponsibly can lead to scary consequences, taking these smart steps will help you make the most of your credit card. Having good credit is extremely beneficial for your future, so don’t be afraid to use your credit card wisely. Contact us to learn more!

The DO’s and DON’TS of Debit and Credit Cards

Payment Options

This week we are excited to dive into the Do’s and Don’ts of Credit and Debit cards! Offering two very similar, but uniquely different services for your financial needs, these cards can help you to reign in your finances and grow your credit score when used properly. Learn all about these tips and tricks courtesy of First Security State Bank.

Debit Card: A card issued by the bank, that is tied directly to a checking or savings account, which allows money to be electronically transferred from one bank account to another when making a purchase.

DO

  1. Use for daily transactions. It’s always great to have a paper trail reminding you of your purchases.
  2. Use for repeated expenses such as gas, groceries, and other costs you can plan for.
  3. Balance your check book. Sometimes charges such as gas or dining can take several days to run through so be sure to keep track of your spending by balancing your checkbook weekly.

DON’T

  1. Use your debit card online unless you absolutely have to. Having your credit card information stolen is one thing, having your bank information stolen is another.
  2. Spend more than you have in your account. Overdraft fees are no fun for anyone!
  3. Give out your PIN # or other banking information.

Credit Card: A small plastic card that is offered by the bank or other financial institution, allowing the card owner to purchase goods and services on credit.

DO

  1. Use for online expenses through secured vendors. Many discounts may be offered online only and can save you and your family a bundle.
  2. Pay your bill in full each and every month. You can avoid hefty interest rates and other timely fees, by not extending your balance over to the next month.
  3. Utilize points to help you earn while you spend. These points are great for supplementing costs of family trips or other extra activities.

DON’T

  1. Spend more than you have allocated for the month. Paying more for interest and other fees is money wasted.
  2. Open too many credit card accounts. Keep one or two cards that you use and payoff each month to help boost your score.
  3. Max out your balance, even if you pay it off each month this can potentially damage your credit score and serve as a red flag to potential lenders.

Get started on your finances today with a secure credit or debit card from First Security State Bank! We’ll help you understand the ups and downs of each and find the best solution for you and your needs.