Credit card is a most effective financial tool if used properly because it can be used as substitute of cash and one can get many benefits by using it regularly but if it is not used properly and expenditure gets out of control then one will face many problems.
Following are the Tips of when and how to make better use of credit cards:
- Make use of credit cards when actually need arises and not just because you want to use it.
- If you want to make a budget of your spending of every month then you can use credit card as a budgeting tool by making payments through it you can see at the end of the month, how much have you spend.
- If you are making regular use of your card then don’t forget to get the one which offers reward on purchasing regularly and this will reduce your interest rate and many offers you can avail such as cash, airline miles etc.
- Always try to make use of one or two cards and if you feel that carrying a card may let you spend more, then try to leave it at home.
- Use your bank ATM machines because they won’t charge you extra service amount but if you will use other bank’s ATM machines then extra service charge will be deducted from your account.
- Try to pay your credit card dues on time.
- Do not make purchase through unknown websites.
- Decide before going for purchasing that whether you can afford those buying’s or not and afterwards will you be able to pay the bill or not.
Therefore you can make use of these plastic cards worldwide but should not ignore the fact that misusing of the card may cause problems for you in near future, so think before using it.