Loan & Credit Cards

Top 5 Tips for Using your Credit Card Wisely

tips for using your credit card

The thrill of having a plastic card in your hand, which provides you magical financial freedom, is really amazing. Whether you have money in your savings accounts or not, whether you are still waiting for your next monthly salary or not, a credit card can help you to fulfill all your financial wishes without having even a single penny in your pocket. With so much freedom, the use of credit card is on a rise and till January 2018, there were almost 36.2M credit cards were issued in India only.

But along with the magical financial freedom, there also comes a huge responsibility with credit cards and that’s why it has been said that with great power and freedom, comes great responsibility. If you are a newbie in using the credit card, then the chances of its misuse and abuse increases as evil-minded people are always looking for a way to sneak into your credit card details and then misuse it.

But along with the evil-minded people, your carelessness can also turn your dream of capitalizing on the benefits of credit card into a nightmare. The most targeted users of hackers are teenagers who get their first credit card from their parents and they easily fall prey to false offers like free money and bonuses which are offered to them through email, SMS, or even a phone call. This could lead to a debt trap and it can turn out to be quite frustrating. Using your credit card correctly is imperative. If you want further guidance on credit cards and other banking-related affairs, it may be best for you to contact a local branch, have a look at credit unions in houston’s website for more information. Expertise can help you make a more informed decision when deciding if one is right for you.

If you want to use your credit card wisely then you need to have the right knowledge of its usage.

So, let’s look at the top 7 tips which can help you to make your credit card work for you not against you.

Strict Spending

Due to the easy availability of the credit card for everyone, most of the people fall into the trap of overspending. With so much financial freedom with a credit card, many people spend more than they can afford and this happens mainly because you are not asked to pay the money upfront. Such practice can cause you serious trouble at the time of repayment and can hamper your financial stability.

You can register your mobile with your credit card to get regular updates regarding your spending and this is a smart way to keep things under control.

Don’t Ignore the Rewards

You shouldn’t ignore the booklet which you get with your credit card because it will give you a brief detail about the benefits of the credit card and the rewards which it offers. Your credit card can act as the door to the world of mind-blowing discounts and reward system. Some of the most attractive and unique rewards which you get through your credit card are lounge access, special service at the airport, etc.

By collecting more and more points through your credit card, you will be able to get free movie tickets, discount on electronics and even free flight tickets as well.

Keep your Card Safe and Secure

When it comes to the safety of the credit card, then the CVV number and the card PIN should be given the priority over all other aspects. If you want to keep your card safe and secure then you should never disclose these two numbers to anyone and in any case. You can check your CVV number on the back of your card. You should also avoid skimming while handing over your card to a salesperson behind the counter.

Along with that, you also need to use only trusted and verified sites when it comes to credit card payments. There are many fake sites which will first ask you to enter your credit card details and then they will start taking money out of it without your consent.

So always check the authentication of the website before making any payment from your credit card.

Don’t Fall for the Minimum amount Payment

At the time of repayment, you must be getting information from the bank about your due date, amount due and the minimum amount payable. But you shouldn’t fall for the minimum amount in credit card repayment because after paying the minimum amount, the interest on the outstanding amount will keep on growing and this interest rate is very high in comparison to the common interest rates. Use this credit card interest calculator if you’re ever unsure.

So, if you will leave some amount outstanding in your current repayment, then the credit card statement of next month can be quite inflated. Always try to pay the full amount in order to avoid the high interest and extra burden.

Also Read: Protect Your Credit Card with Simple Tips

Set your Limits Wisely

If you are too much worried about overspending in a month through your credit card, then you can ask your credit card provider to lower down your limit to something which you can manage every month. This request of lowering down your credit card limit will be highly welcomed as the credit card provider will always want to you to pay the full money. This will lead to changes in your credit card’s limit immediately.

There is no need to stick to a limit which can provoke you to overspend or which can destabilize your patience with your credit card spending.

So if you want to make your credit card work for you instead of against you, you need to be mature, good at decision making and should have control on spending. A credit card can fulfill all your financial wishes without any trouble, but only if you take proper measures in its repayment, security, spending and other features.

About Saurabh Gupta

Saurabh Gupta is the technical content writer at MyQbHost, QuickBooks cloud hosting company. His area of expertise includes cloud computing, cloud accounting, software, and cybersecurity. In his free time, he loves exploring the world of technology and software.
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