I came to write this post due to my friend who was just being approved for visa credit card and he is pretty new in this subject. Of course, as a new comer in a credit world there are not many things you know about it and it is very important as a credit card holder to understand what it is, the procedures especially procedure of credit card payment, credit card fees and tips to keep on a good standing of your credit rating.

First important rule that you have to know is The 20/10 Rule: Never let your credit card debt get to be more than 20% of your total yearly income after taxes. Also for each month, don’t have more than 10% of your monthly take-home pay in credit card payments. This is the MOST IMPORTANT rule to know because if you exceed this percentage, it’s going to be rough to keep ahead yourself.

Always make your payment ON TIME. It’s logical. You owe money, the faster you pay the bill the better it is. It is good to keep your financial situation in healthy condition. Trust me, you will sleep better at night when you know that you do not owe money to anybody .

The tips to keep yourself for doing such on time payment are:

It helps a lot when you understand at least minimum money that you have to pay in a month. It is better to show that you are paying than procrastinating yourself to delay its payment which could cause chaos financially in the future. By paying the minimum fee, at least it will cut down on the finance charges you owe. Late payment penalties are the common problem of being into bad credit situation. Stay tune with what you owe and do not let it over exceed your payment capability, you will be fine.

If you really stuck, I know it is such difficult thing to do but nothing wrong to contact your lender when you have very difficulties to pay your debt. Most creditors are willing to set up alternative payment options, especially if you inform them right away of your situation. Sometimes, you gotta do what you gotta do .