Use your Credit Card Wisely

Nowadays a lot of people have Credit Cards some look at it as status quo but, having that power to buy using your credit card also entails a big responsibility. Yes, once you have a credit card its so easy to use just a swipe and sign then your done, but think again it does not end there you still have to pay for the item come due date.

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by: phnompenhpost

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Here’s some ways to be a responsible credit card holder especially for the first timers.

Know more about your credit card. Does it have an annual fee?, what perks do you get from it?, what are the charges or other charges does it have when you use it? And the like. So that, you will be aware when the billing statement comes.

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Use Rewards and Perks of your card. Choose a card which give rewards like shopping points, travel miles, discounts, rebates and the like. This will maximize the use of your card.

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Use your card for your needs and not wants. Be wise when buying don’t be an impulsive buyer. Stick to what is really needed or for emergency use only. This is to avoid debt.

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Use only upto 30% or less than of your credit limit. This will help you control your spending and would be lighter on the budget when due date comes. Think about you income vs your debt and also other bills to pay (electricity,water,mortgage,and others).

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Pay in full your credit card bill. If you pay only the minimum amount due there will be an interest on your next billing date and it will go on and on, while If you pay in full you will avoid being charged of interest and sometimes other fees. Pay it also in advance and on time to avoid penalties and other charges.

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Check you billing statement. This is to keep track of what you purchased and avoid fraudulent purchases, report it at once when you see unauthorized purchases made. This will also help you monitor your cut-off date so can purchase after cut-off so you can have more time to make payment and the billing period to set aside payment on due date.

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Be cautious when using your credit. When using your credit card on online shopping be careful in divulging details be sure the site is legitimate and safe, have a card which has an OTP (OneTime Pin) when you purchase this is needed to verify if the transaction is authorized by the card holder. When paying in stores make sure you see where your card is being swiped there are a lot of machines which can hack your details.

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Regardless if you have a credit card or none be wise in spending your hard earned money. Live within your means so you can fully enjoy your earnings. Save also for the rainy days.