How to use credit card in right way

How to use credit card in right way
Credit card

Having Credit Card is not enough since it is required to be acumen to use it in a right way. Discerning how to use a credit card in a right way is you: using a credit well can earn great reward points, but if used badly it can leave you greatly in debt. How to use credit card in right way

How to use credit card in right way

How to use credit card in right way
Credit card

In good hands, a credit card offers a hand of benefits. While a credit card is a short-term loan, there is actually a lot more to it than this. There are credit cards, best suited for dealing with current debts, while others spend for making shopping and paying for them later. How to use credit card in right way
In order to help you, here we are going to cite some of the best tips to dodge costly fees and interest, and make the most of your credit card. Let’s check it out… How to use credit card in right way

1. Keep record of your spending – Credit cards are a handy way to pay for your shopping, but this help can come at a cost. It can be very simple to increase the debt on your card then you expect or are comfortable with, so it’s essential to stay in control. Make a budget diary or use any app to keep the track, also always remember to keep a checking your credit card statement frequently. How to use credit card in right way

2. Do the payments on time – When you receive your credit card statement, check what is the due date to make the payment, and make sure you pay on time. This will not only help you to dodge extra interest charges or hefty late payment fees but also help you in keeping a good credit score. How to use credit card in right way

  • To make it simpler to pay on time, consider setting up an automatic debit to pay a fixed amount off the balance owing each payday. How to use credit card in right way
  • Just make sure these payments include at least the minimum monthly payment amount on the card.

3. Maximize your payments – If you only do the minimum repayments on your card every month, you will pay a lot of interest and it could take you a long time to pay off the complete balance. How to use credit card in right way

  • Make a plan to get rid of your credit card debt and pay more than the minimum repayment every month.
  • If you’re finding it hard to pay more than the minimum monthly amount on your credit card, consider shifting to a card with a lower interest rate, and pay off more when you can. How to use credit card in right way

4. Set a practical credit limit – You know your credit is not a well of money also your credit limit is not telling you to spend money. So the amount you spent should be an amount you know you can repay, and one that won’t influence you to spend more than you can afford. How to use credit card in right way

5. Reducing your credit limit – If you want to avoid the lure to overspend on your card, ask your credit company to reduce your credit limit. You can do this by phone or by meeting them in person. In most of the cases, your account will be refreshed within 1-2 business days. How to use credit card in right way

6. Requests to increase your credit limit – Credit card companies are not allowed to send you messages to increase your credit limit without first getting your approval.

  • These implements on both new and existing credit card users. You can change your mind at any time by communicating your card issuer and asking them to stop mailing you these offers.
  • Whether you choose to opt-in or out of getting offers of more credit, you can ask your card company for an increase to your credit limit at any time.
  • If you need to extend the limit to make a particular purchase, aim to pay the debt down quickly, and then lower your credit limit back to a more controllable amount. How to use credit card in right way

7. Try not to use credit to make ends meet – If an unforeseen emergency happens, or if you’re just running low on money before payday, using credit or taking a cash advance is not going to help you in the long run. It can only get you through the immediate emergency but, over time, you’ll end up even more debt.

8. Use store cards wisely – It can be fascinating to get a store card if you shop frequently at a particular retailer.

  • Purchases paid for with these cards might help you to earn rewards points or give you access to discounts or other offers.
  • But think twice before you sign up for store cards, as there are frequently fees attached (like service and annual fees), and the interest rate might be higher than many other cards.
  • Review all the terms and conditions carefully to make sure that any possible savings you might earn won’t be wasted away by fees and charges.

9. Check your credit card statement – The best way to keep the record of your monthly card statement is to keep all of your credit card statement receipts each month, then mark out the charges on your statement. This will let you check that all the charges that you have been charged for are the right amount for the things you bought and that you are not going to pay for anything you did not buy.

In case you don’t keep your receipts, here are few things you should look for when reviewing your credit card statement:

  • Large or unusual charges
  • Charges by companies you do not recognise
  • Duplicate charges
  • Changes in direct debit amounts

If any transactions that you didn’t make is listed on your card statement, contact your credit card company immediately, as they may be able to nullify the transaction. See unauthorized and inaccurate transactions for more details.

10. Close your credit card properly – Closing a credit card account is more complex than just cutting up the card. There are process that you need to perform in order to close your card properly. Visit the website of your credit card company to visit them to their branch to know more about the process of closing a credit card.

Conclusion – If you understand all of the tips that are mentioned above then you’ll understand how to use your credit card properly. All of these tips will help you avoiding the high interest and increased debt that you might face if you use your credit card spontaneously.

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Nandini Singh is from Delhi and holds a graduate degree in Mass Communication from Delhi University and Post-Graduation in Political Science from IGNOU. She is working as a Freelance Content Writer. Nandini joined Jiyo Pal Pal since this web portal covers her area of interest. Though, she have already written a myriad of articles revolving around educational, e-commerce, motivational, religious sites, but Jiyo Pal Pal attracted her a lot since it believes in pampering creativity and innovative ideas. Being a Content Writer, she will keep you serving something unique and enthralling regarding various topics such as Life Style, Festival, and Temple Darshan etc. She is feeling grateful to be a part of Jiyo Pal Pal family.

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