Credit Card basics to keep in mind

Its not unusual for some foreign companies to do a credit check on a potential job applicant especially if that person would be handling company funds. In a time when organizations need to be more vigilant about how they conduct their affairs, looking at how you manage your own finances is an indication of your ability to allocate company funds.

Are you the type of employee who would be a free spender with the company credit card, ordering expensive meals, first class travel and gifts or are you fiscally responsible?{{more}}

With that said it’s not only important to budget but to make sure you know how to handle credit. Having a credit card is not a right; it is a privilege that should be handled responsibly for there are serious long-term financial consequences when credit cards are mismanaged. When you obtain a credit card you are agreeing with the credit card company to pay back in full all the debt you borrow regardless of your employment status. In order to maintain the privilege of having a card there are a few basics you need to keep in mind.

1. Credit cards are not free. Companies charge you to use their cards. There are lots of fees (Annual fees, transaction fee, interest rate and late fees) attached to credit cards, and they differ according to the type of credit card. Responsible credit card users are aware of all the fees.

2. Pay more than the minimum. The monthly bill states the minimum payment due. Always pay more than the minimum. This will decrease the amount of interest you pay on your balance. Credit card companies make money when you pay only the minimum.

3. Check your monthly statement. Verify your statement each month to make sure you made all the charges that are listed.

4. Keep all receipts. Your receipts from purchases will serve as a second record of your transaction in the event there is an error on your monthly statement.

5. Secure cards. Always keep your card in a safe location and do not lend to anyone, friends or family!

6. Lost or misplaced cards. Report lost or misplaced cards immediately, preferably within 24 hours. Keep a copy record of the front and back of all your credit cards, and the number to call to report lost or stolen cards in a separate safe location from your cards.