Credit cards increase the convenience only if you use them wisely; otherwise you might face some severe financial troubles regarding bad credit history and debts. Get to know the rules and play with it smartly. Remember the important dates such as the closing date. Instead of holding a balance, use a cleaned card.
For a lot of people, getting a credit card is way easier than managing the one; to make it a good experience keep in mind the following points:
1. Know your Responsibilities
Understand the financial terms as debt and stay out it. Learn the skills of money management. Choose an appropriate credit card according to priorities. Get a card that comprises fine print and best rates.
2. Don’t Carry Balance
If you are paying on time, you will not have to pay any interest and/or fees. In fact, you will earn interest on the purchase you make, till the period when your statement will become due.
3. Keep a Check On The Number of Cards You Own
Owning multiple cards will not help. Limit your number of cards to one or two as this will aid you in managing expenditures.
4. Know your Statement Closing Date
Every month, if you pay your balance, your bank gives you a free loan. Banks offer a grace period of 21 days between the time your statement opens and closes.
5. Don’t Overspend
In order to avoid financial trouble, use your credit card responsibly. It will establish a strong credit rating and help you pay your monthly bills well.
6. When Travelling Abroad, Make Use of The Right Credit Card
When you’re travelling outside the country, get in touch with your card companies and inquire about their foreign transaction fee. Also, let them know when and where you are scheduling to travel. Thus, they will be able to help you in a better way.
7. Choose Well and Wisely
When you select a card for yourself, know your repayment options and interest rate. Compare the cards available depending on your ability to pay and needs; for example the interest you are supposed to pay, a low APR (annual percentage rate), grace period, features, services, extended warranties, etc.
8. Cancelling Your Card
If you think that a change is required, go ahead and change your credit card service. It can be for a better customer service, card perks, or easier rates. But, don’t do that very often. Take the plunge only if you find it necessary.
9. Negotiate For a Lower Rate of Interest
If the current rate that you’re paying on your purchases is high, ask for a lower one. Evaluate the rate periodically to get the best possible deal.
10. If you Don’t Need Credit, Don’t Apply For It
Your initial accounts will increase your credit score, but after a point they will just reduce your total score. One cannot predict that point, but it is advised to stick to a low number of credit cards, instead of increasing the number of cards unnecessarily.