Credit cards are convenient because they provide you financing at the shortest time possible. But this is a truth also that credit cards can really kill you by limiting your strengths.
Credit card also comes in limit like credit cards for business or for students and even also for households, depending on your credit limit is your capability to purchase items. However, a credit card can cause trouble. If you can’t repay your debts properly on time, you might find yourself deep in financial debt because of tardiness.
A credit card is a double-edged sword, and proper use must always be maintained. Using a card properly means to ensure that you can pay in full all the cash advances you’ve taken out.
You might thinking that it is your money and that you pay for it each month, but you can only retain this way of thinking only if you can pay for all your cash advances in full. Large interest rates can kill your finances if you’re not too careful about uses of credit cards properly.
Only use your card when you actually need it. Don’t use it when you want to buy or purchase something. Usually, the temptation of credit cards is that you have the convenience of having cash on hand when you not have. So always monitor your spending.
Credit cards cannot tell you how much you’ve spent unless you’ve maxed out your cards. Keep your receipts and ensure that you keep track of them. Take note of your spending in a notebook or plaster the receipts on the refrigerator or whereas convenient for you to see. Making small investments using the card that you can easily pay for monthly will increase your credit score. You can use it when doing groceries or purchasing items that you actually need but do not cost a lot. Using credit cards are not for fun care about it, just like a manager of finance department.
So many of time this happens that we bought so many goods and shopped more than enough. The excitements and facing richness causes negative usages of money. This not happen with any single person or individual this is the problem of every middle class and average class of people who recently got there credit card. We always need to care about the list of expenses, if you can purchase products and service on the cash money basis then why to prefer using credit cards which always been a pressure on us on time of repayment of all expenses made as well as their interest.
There are some notes for people to follow it and rescue yourself from overloading of pressure of repayments. Premier credit cards, easy credit cards, household credit cards, student credit cards, college student credit cards, secured or unsecured credit cards, low interest credit cards or even business credit cards are some of main type of credit cards following them an account holder apply for credit card by a simple application where some formalities have to be done and submit it to bank. Preferring best one of them is very important rather than selecting higher one which looks are better credit is more. Your need will decide what is better for you.
Things to be follow when you are pay for any goods and service and opt out for payment methods where a variety of payments available like cash, debit and credit payment. But all have their different way to pay in favorable time.
Things to Avoid While Paying by Credit Cards
- Avoid situation where you pay by credit card to only show off.
- Never give your credit card to nay one because none expected thing done.
- Use credit card when there is no cash in your pocket but be aware about expense.
- Never pay always by credit card, pay by cash or debit cards only.
- Credit cards must be used in unexpected situations only where no help exists.
- Always know about the interest which you have to pay further.
- Use for services which have no other payment options like cash or debit.
- Situations like purchasing of domain and e-bay shopping needs it use there.
- Be safe for theft of cards, if happen then quickly call your bank and block it.
Credit cards are just like a monster or two different faces of a card where if will not take of it well then this is sure that card will punish you well. Bank never gives credit cards to low income accounts because they may not have ability to pay the interest but many time high income accounts not able to pay in time. Be always careful when use your credit card.