Using Plastic or How Not To Die financially By Plastic

Have you ever noticed that if you pay your credit cards on time they just keep on increasing your limits.If you start out with a $1500.00 credit limit within 6-9 months you could have a $5000.00 credit limit if you have paid your minimum balance within the 30 day agreed period.

If you are capable of paying off large sums your credit will increase even faster.

If you start collecting cards and increasing your limits it is very easy to max out the cards.

This can cause you to be paying thousands of dollars in interest every year.

So one tip never use more than 80% of the credit on any card at one time.This will cause your credit score to drop.If you need to use a larger percentage get them to increase your line of credit first.
Tell them not to increase your line of credit if you can’t handle credit wisely.

Use only one credit card on a regular basis that way you limit yourself to one payment monthly.

That doesn’t mean you shouldn’t get other cards and work your credit line up to a large amount if you have a good purpose for it.
Some of these credit card companies will let you use your card as a line of credit at very favourable interest rates.You can use this to fund money making schemes by freeing up other cash. Just make sure you aren’t doing this on a wing and a prayer with something that you know nothing about.

For instance I have a card with a $45,000. line of credit on it. I have never used this card for purchases.I have always called and negotiated with them for loans with very low rates of interest, then I would pay large payments on the card paying if off very quickly.

This caused them to increase it again and again and again.For the last few years I have just waited for them to call me.The minute the line of credit is no longer in use they will start calling and if I want some funds for an investment I can negotiate.
Last week they called me. The rate started higher but as I didn’t have an investment in mind I didn’t need any money. The rate quickly dropped to  2.99% for an unlimited period of time, as in forever.

They wanted a 1% upfront fee which I negotiated away. 

What did I do? Since this is 2 .3% below my mortgage rate I took 80% and used it to pay off a large chunk of my mortgage .  This allows me to make larger monthly payments on a chunk of my mortgage while saving 2.3% in interest , which turns into thousands of $ in savings over the next several years and I can get that bit of mortgage knocked off completely in the next 3years
You always have to remember that in doing something like this it is showing on your credit bureau at all times as it is a line of credit and not a mortgage.
Therefore it is imperative to be dead on time with all of your payments. You have to do it in a way that works for you not against you. Therefore be careful about cancelling cards or having your amount of credit reduced.
Cancelling can cause your credit rating or Beacon score to drop somewhat and it can take several months to pick up those extra points. 
Hope this helps.