Two of the main ways of thinking involved in credit card ownership include people who are too afraid to use them at all and people who use them irresponsibly. Used properly, they can be a very effective financial tool for your family budget – and we are going to be talking about ways that you can do this in this article.
Of course, if you are already in difficulty, you may need to look into credit card debt relief programs. But, for those who have yet to pick up a credit card, here is some advice about the ways in which you can use them responsibly.
Pay Off Your Balance Each Month
The first and most obvious top tip that we can provide is to pay off your balance in full every month. Otherwise, you will end up paying interest on your purchases and this is money that is simply being transferred to banks and credit card providers.
Avoid spending more than you can pay each month on credit cards by making sure that you keep a detailed household budget that outlines all your expenditures. Once you have it in place, ensure that you stick to it. If you somehow find yourself in a situation where you can’t pay off the balance in full, make sure that you at least make the minimum payment to avoid late fees and a possible hit to your credit rating.
Avoid Using Them Frivolously
Rather than using them for impulse buys and personal purchases, you should only use credit cards when you really need them. Perhaps you need to pay off a bill before your next payday. In which case, a credit card can act as a temporary loan to yourself. If you pay it off in full once your money arrives, you can avoid paying any interest charges altogether.
Use a Rewards Card
If you use a credit card for most or all of your purchases, it makes sense that you use a rewards card that offers you certain incentives to keep using it. For example, you may get cash back, airline miles or retail points. Check online for the different credit cards which offer rewards and choose one that is going to work for you best.
Protect Yourself from Credit Card Fraud
Credit card fraud is a growing problem, so you need to protect yourself from this in the best way that you can. Start by keeping them safe whenever you are carrying them around so they can’t be easily snatched. Don’t keep information lying around with your credit card details displayed on it.
Avoid giving out information to anyone you don’t trust, particularly if they have called you directly over the phone. Review your statements every month to ensure that there are no unexpected charges. If you lose your card or have it stolen, you should report this immediately.
So, if you are planning to get a credit card, these are a few ways that you can use them responsibly so that they work for you.
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Lisa Musser says
I agree with the tips on paying your balance at the end of the month to avoid the finance charges. Credit cards such as bensinkort.cards can be such a benefit when used properly. The problem comes when consumers use them frivolously and treat them with care. I personally like the rewards or cashback option, it really helps me save on expenses.
Kinki Guru says
I truly Understand the pain of credit card if not used properly, I having now credit due amount of 4 lakhs which Interest only i am paying per month. I dont know How I will repay the full amount. Thank you for your amazing article.
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Zoe Campos says
I definitely agree that we shouldn’t spend more than what we can afford each month to avoid having debt on our credit card. Unfortunately, my friend has really bad spending habits and only realized it too late now that he’s on the verge of bankruptcy. I hope he can find a lawyer who can help him with his current situation.
Zoe Campos says
I definitely agree that people should only use their credit cards whenever needed. One of my closest friends used her card everywhere she went and ended up being a victim of fraud. It might be better if she can assess the establishment first before making a purchase or see if they employ good card processing consultants.
I agreed with you. Superb article and I would really like to thank you for your article it’s really helpful. I really like the rewards or cashback options that really help save on costs. Thank you for this amazing post.
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