Nowadays, many of us have credit cards. Do you really know how to use them?
If you recently applied for a credit card or are like me, you already have one. Then, this post on credit card tips for beginners may help you use it wisely.
Credit Card Tips For Beginners:
A credit card is a bit like your health, and you have to take good care of it. Otherwise, you may have bad surprises if you don’t minimize risk and make good decisions while using it.
Read your credit card terms and agreement before use.
There are many different credit cards, and each one has different terms of use. When starting to use one, read all the terms and agreements carefully. You must know when you will be charged a fee if you don’t pay in time.
How interest can be applied to your account will help you manage your credit card and choose one that fits your financial habits.
Do not exceed the limit amount of the credit card.
If you don’t want to exceed the limit amount you have on a credit card, create a budget plan. I plan for all my finances each month. Like this, I can reduce the risk of exceeding the limit.
Also, you must ask yourself how much debt you can afford and If you will be able to repay it without much interest.
If you exceed the limit and cannot repay, the lender might consider it a violation. Your bank can cancel your account and take legal action against you.
Avoid having many credit cards at a time.
In the past, I had three credit cards because I was tempted by the attractive terms and features offering by the bank. But I didn’t realize that at the same time, I was creating more dept.
Now I have only one credit card. This had prevented me from going too deeply into debt. Also, try to switch to a credit card that offers lower rates and fees. Stick to it and use it rightly.
Make full payment before the date due.
Not always possible, but whenever possible, try to make a full payment or try to keep your balance below 30 percent of your credit limit.
Interest will be added if you miss a payment or pay it partially. So, If you want to avoid all this disagreement, the best strategy is to make the full payment before the end of the period.
Use rewards that the credit card offers
Most credit cards come with offers and discounts that you can use each month or redeem after a certain period. Don’t hesitate to use them.
With certain credit cards, you have cashback on points accumulated on each purchase you make. Others will give rewards or discounts at restaurants, shops, or other services.
If you travel, you can get discounted offers on air tickets. So, try to choose a credit card that offers you the highest rewards when using it.
Conclusion
A credit card is a very powerful financial tool, but you have to be very cautious when using it.
Don’t ruin yourself into accumulating debt. Use it only when it is essential, and look for a credit card that meets all your needs.
A credit card can help you be financially secure. And if you follow the rules given by the lender, you will avoid unwanted debt and feel more financially secure.
Someone told me this little story. “One day the credit card of my wife was stolen, what a relief it was to find out that the thief spends less than her”…….So, be wise like the thief 🙂
That’s it for Credit Card Tips For Beginners! Hope you enjoy reading!
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