Credit card is a useful financial tool, if we used properly and carefully. If not, it can turn into a danger for your finances.Preferably, you should set a sum budget before you make purchases through your credit card. And only spend as much you can pay back, after all it’s not your money
Here Are Few Basic Healthy Credit Card Tips
You Should Always Keep In Mind Before You Become Debt-Ridden
1.Are You Using Your Credit Card With In The Card Limit?
Generally there is an interest free period for every Credit Card(CC). So, in order to avail it, you should ideally keep your CC dues nil. As long as you pay the amount on time, you can take benefit of the interest free period.
2.Are You Postponing Your Credit Card Dues? Never Do That.
Try making the full payment on the due date. Even if the CC statement says that you need to pay a sum percent of it .Postponing the payment to next month will levy monthly interest and also late payment fees in some conditions .If you keep using the CC continuously, your debt will grow.
3.Do You Withdraw Cash Through Your Credit Card? Never Do That.
Do not forget that cash withdrawals from your CC will incur both one-time fee plus high interest charges. So, it is not advisable to take out cash through CC unless you are in horrible need.
4.Are You Converting Purchase As EMIs And Reward Points? Its Good.
It is suggested that you should always transfer you balance to EMIs (Easy Monthly Installments). Doing so will help you pay your debt more easily on less interest charges.Also, every CC purchase means earning rewards points. Never overspend just to earn them.
5.Are You Allowing Auto-Debit For Card Payment? Its Good Thing
If you pay your CC payments on time, you could save a lot of trouble. Thus, you should link your account with the CC in order to pay your CC bills automatically. This way you will never forget your payment date and not suffer late payment fees.
6.Are You Exceeding Your Credit Card Limit? Never Do It.
Always remember that your CC company shares your credit history and score details with the government departments like Income TAX. Failure to make payment on time and exceeding your credit limit can negatively impact your credit score. So, it is advisable that you only use a certain amount of your CC limit. Pay back on time before you use it again.