A credit card can be a handy financial tool. It allows you to get access to instant credit to buy products or services. Also, you also enjoy numerous additional benefits like emergency loans, cashback offers and complimentary gifts. Moreover, when you use a credit card regularly, you can boost your credit score. In this article, let’s discuss how to use a credit card and other tips you need to keep in mind.
The best credit card advice you need:
Choose the right card
Not all credit cards are alike. You can choose from a wide variety of cards ranging from standard ‘Plain-Vanilla’ cards, rewards credit cards, student credit cards, prepaid cards and many more types. Choose a card that best fits your spending habits and financial needs. For example, if you travel a lot, you might want to apply for a credit card that offers you points or bonus miles to be used for your travel needs. Similarly, if you are using a credit card for most purchases, it makes sense to use a card that offers rewards. This allows you to get cash-backs and discounts regularly.
Pay off your balance each month
When you use your credit card, make sure to pay off the balance in whole each month. Ensure that you pay all your bills on time. This is because even a single late payment could hike your interest rate. Also, a late fee could be levied resulting in additional payments.
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Understand the fees
On receiving a credit card, it is a good idea to comb through the applicable fees. For example, few credit card companies levy high annual maintenance charges. However, many cards don’t charge them. By looking at the different charges levied and comparing with other options, you can minimize your credit card fees.
Charge only for what you can afford
Best Credit cards give you the freedom to make purchases in an instant, to be paid at a later date. But even when you have the opportunity to spend extravagantly, it is always better to live within or below your means. This helps you to repay the balance in full without any issues. Treat your credit card as a temporary loan to yourself that is to be paid back as soon as possible.
Beware of credit card fraud
Credit card providers take significant measures to ensure the security of your credit cards and your money. But even with all these measures in place, you need to protect yourself against fraud and theft. For example,
- You must use your card for online purchases only on trusted websites.
- Save all your receipts in a safe place
- Don’t lend your credit card to anyone
- Report any suspicious activity on your card to your bank
- Don’t give out your credit card information on the phone
- Check your monthly statements
Every month, your credit card company sends you a bill that outlines all your transactions for the month. It is a good idea to take a minute and review all the charges to ensure they are yours. In the case of identity theft, you must report it to the company at the earliest.
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Credit cards have made life more comfortable and convenient. And like most things in life, you need to use them responsibly to avoid unnecessary hassles. These tips can help you enjoy the credit card benefits in your daily life.
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