managing and protecting credit card

Credit Card Practices to Avoid

Which of these credit card practices could land you in trouble?

  1. Making charges over your credit limit

  2. Using your credit card to buy essentials

  3. Keeping your credit card purchase receipts

"A" is correct. If you go over your assigned credit limit, you may be charged an extra fee and ultimately end up with a higher interest rate. This practice may also lead to financial problems or damage your credit score. Getting cash advances and transferring the balance from one credit card to another may also lead to hefty fees. If you only use your credit card to buy things you really need, you'll be less likely to overspend. Keep and file your credit card receipts for future reference.