We all know that there are several benefits of having a credit card. A credit card helps you to cover all your expenses without carrying any money while on the move. It also enables you to make purchases online sitting right at home.
While you can book flight tickets, choose hotels and make car reservations online with your credit card, you need to handle all your purchases and online shopping with care. In this regard, each and every credit card user needs to take into account certain credit card usage tips.
Credit Card Tips
It has to be kept in mind that credit cards are beneficial and dangerous at the same time. While it gives you the power to spend when you don’t have cash in your wallet, it is dangerous if you are not aware how to use the plastic money properly. Overuse of swiping your card can result in financial breakdown.
The most fundamental thing that you need to take into account is that the credit cards offer you short term solution and must never be used to offer finance in long term. This is where many people make the mistake and hence end up getting into trouble. Given below are few useful suggestions and tips on judicious credit card usage.
Always consider to work with major credit card companies that are regulated by proper governing bodies. Indeed, it offers you the safest option to work with an organization that is a listed or owned by a company listed. Small time credit card companies can land you in trouble at times especially when it comes to credit recovery methods.
You must calculate your total expenses that you are quite likely to incur on your credit card usage in due course of the time. There’s a formula given within the proposal of the provider to your own likely borrowing needs and repayment. You need to work out what stands as the cheapest (Read: APR vs Interest rate)
You must consider how you would use the credit card and ask the following questions yourselves before spending. What you intend to shop with the credit cards you possess? How much you can afford to spend with the card every month? Do you want to clear the balance at the end of the month?
One of the most significant credit card tips will be to protect your account details at any cost. You must guarantee that you are quite careful about the companies that you choose to contract with. If you are in doubt, you can pay in cash or you can go somewhere else. Also, do not mention your card numbers, PINs etc to even a call center or customer care executive forget alone your merchants.
You should carry only those credit cards that you would actually use frequently. Do not carry too many at a time. It takes a lot of time to figure out just in case any one of them goes missing. Also, more cards usually means more spending and less tracking.
Hold onto the receipts and always keep a note of your major credit card transactions. You can always contact the credit card provider if you are in doubt about the transactions. Also, keep and eye on any miscellaneous charges imposed by the credit card provider.
Never carry forward your credit card debts for more than a couple of months as much as possible. You may end up in the debt trap if you prolong your credit tenure or default payments.
Never try to pay a credit card debt with another credit card (which might sound like a better deal). Most of the time, passing on your credit from one credit card company to another is the sign that you are already in a debt trap.
If you are considering shopping online then you must look for those companies that make use of the third party payment provider like Word Pay or PayPal. Also make sure that when you complete a transaction or a payment the address bar reads https:// and not http:// this indicates you’re your credit card information is encrypted and secured.
Never let your minor kids know how to use credit cards for online purchases nor let them know your passwords, PINs etc. There have been many incidents of kids misusing their parents’ cards for online game shopping, gambling etc