How to use Credit Card
Credit cards are a convenient way to pay for the items you want, but this facility can come at a cost. Avoid expensive fees and interest by following our tips to view how to use credit card.
Keep track of your expenses
The first and foremost step to how to use credit cardI is to track your expenses. t’s much easier to accumulate more debt on your card than you can repay, so it’s important to stay in control. The best way to do this is to keep track of your expenses. Check your credit card statement regularly.
Pay your credit card in a timely manner
Another important factor in how to use credit card is making credit card bill in a timely manner. When you receive your credit card statement, check the payment due date and make sure you pay on time. This will help avoid additional interest charges or higher late payment fees.
To facilitate timely payment, consider setting up a direct debit to pay a fixed amount of balances on each payday. Make sure these payments cover the minimum monthly payment you have to pay on the card. Mostly the full payment is very essential to maintain good credit healthy.
Increase your credit card repayment
The very important point of how to use credit card is to make credit card repayment in full. If you only make minimum repayments on your card each month, you will pay a lot of interest and it may take years to get your credit card debt settled. If you find it difficult to pay more than the minimum monthly repayment, consider switching to a card with a lower interest rate, and pay as much as you can.
If you switch, make sure to close the old card so you don’t sink into too much debt. Learn more about credit card balance transfers. if you are unable to make the payment in full consider to get a personal loan at a lower interest rate when compared to credit card’s high-interest rate.
Set prudent credit limits
Your credit limit should be the amount you know you can repay, and will not force you to spend more than you can afford.
Smart Tip
If you are unable to pay your outstanding balance every month, do not increase your credit limit. Higher credit limits make it easier to get into debt.
Reduce your credit limit
If you want to avoid the temptation to spend more on your card, ask your lender to lower your credit limit. This can be done by phone or by visiting a branch. From 1 January 2019, you can also lower your credit limit online. In most cases, your account will be renewed within 1-2 business days.
Calls to increase your credit limit
Credit card issuers are not allowed to send you calls in any way (including telephone or online) to increase your credit limit – even if you have previously sought these offers. This applies to new and existing credit cards.
You can ask your card provider to increase your credit limit at any time.
If you want to increase the limit for making a special purchase, aim to pay off the loan quickly and reduce your limit to a manageable amount.
Do not use credit to meet results
If an unexpected emergency occurs, or if you run out of money before the paycheck, using credit or taking a cash advance may not work for you in the long run. It may get you through an immediate crisis, but over time, you will end up with more debt.
To get free and confidential credit assistance, look for a financial advisor who can help you solve your credit problems and reduce your reliance on credit cards.
Use store cards wisely
It can be tempting to get a store card if you shop regularly at a particular retailer. Receive purchase rewards points paid with these cards or they may give you access to discounts or other exclusive offers. Think twice before signing up for store cards, as most fees are linked (such as annual and service fees), and the interest rate may be higher than other cards.
Carefully check the terms and conditions to ensure that the potential savings you earn are not eaten by fees and charges.
Check your credit card statement
The best way to check your monthly statement is to keep all of your credit card receipts for each month, and then tap them against the charges on your statement. This will help you verify that you have received the correct amount for the items you purchased and that you have not charged anything you have not purchased.
Even if you don’t keep your receipts, here are a few things you should consider when checking your credit card statement:
- Fees from companies you do not recognize
- Large or unusual charges
- Changes in direct debit levels
- Copy fees
If there are any transactions that you do not make, contact your credit card provider immediately, as they can modify the transaction. See Unauthorized and Invalid Transactions for more details. Depending on your credit card, make sure you only pay for the expenses you authorized.