Free Money Finance pointed me in the direction of Yahoo!’s Eight Commandments of Credit.
Although this is primarily information for the U.S. market, most of this is applicable here in the U.K. too.
Of the eight commandments they suggest we follow, here are the most important to remember, in my opinion:
- Credit is just that, credit – this is how much companies think they can lend to you, knowing that they can get it back – it’s not how much you must spend!
- Don’t pay by their rules – paying the minimum amount each month is a definite “no no”. Credit card companies know that by doing this, you will be paying back your debt for a long, long time -and increasing the amount of interest that you owe them along the way.
- Play the system – never be afraid to threaten to take your business elsewhere. Credit card companies know that it will cost them more to get a new client than to keep an existing one, so they’ll more than likely be accommodating to your wishes if you threaten to move away.