If you want to own a credit card, it is important that you know how to use it right, or else, you might be in deep trouble. Of course, you do not want to wake one day full of debts and collection calls and emails just because you were not able to handle your credit cards right.
Sure, having a credit card is advisable considering that it is the most convenient medium to transact and bring to any places you go. You can use credit cards to purchase any items online, deposit money to different online slots websites, buy things overseas and so on. As long as you know how to use your credit card right, there is nothing you should be afraid about owning one.
Tips When Using Your Credit Card
Here are some of the things you can consider the moment you receive your credit card from your chosen bank or financial institution.
Set up an automatic spending limit
Just to make sure you won’t go beyond your limit, set up an automatic spending limit. Your card will decline any transactions that will go beyond the limit you set up. Some are also using this technique to ensure that when their cards are stolen, it won’t be used in huge transactions immediately.
An automatic spending limit will also stop you from buying things impulsively.
Stick to just one credit card
There could be many financial institutions offering you credit cards, but just to make everything manageable, stick with just one credit card. Anyway, you do not need a lot of credit cards as that only equates to a lot of debts. Stick with just one credit card.
Choose your credit card provider wisely, choose the one that is highly acceptable to many facilities, charges low interest rate, offers rebates, gives rewards, does not have an annual fee and so on. Do not immediately sign a credit card contract unless you have reviewed all the proposals you have on hand,
Stick with the best available credit card and do not look somewhere else.
Make all your purchases planned
Don’t go to a mall without any idea of what you want to purchase. Shopping without anything to purchase would lead you to buying impulsively. Sure, you have your credit card hence even if you do not have spot cash, you can afford whatever it is that you want.
Pay off your credit card by the end of the month
If you can, pay off your credit card by the end of every month. Do not wait for it to incur interest. The longer your debts on your credit cards, the higher the interest it will incur. Although you can afford to buy the item you are planning to buy now, using your credit card is still ideal because of the rewards you can gain from using it, just pay it off at the end of your billing cycle.