Credit cards are omnipresent in every wallet or purse today. The ease of cashless shopping propelled by these plastic cards have made them a handy means to cater to expenses which often run the risk of unnecessary use & impulse shopping. Credit cards are of course bliss, provided you know how to handle them wisely. The post below offers a brief on the dos & don’ts with the plastic in your wallet.
The Dos
Use only for items you need
There is a fine line between our needs and wants and you have to maintain that with your credit cards. You would only use the credit card for making big purchases that you need, not just because you want them.
Pay the card bills regularly
You must pay your credit card bills on time to avoid the unwanted credit card debts. Maintain a diary or set an alert for your due dates so that you are never late with the payment. Also as the paycheck arrives each month, you must segregate the amount for your credit card bill and it must stay untouched for other uses. Contrary to popular notion, it is not all fine to carry the credit card balance month-to-month.
Cards with low APR
You must be careful while choosing your credit card and the experts always advise to take to credit cards carrying low APR. It would be handy for you in case you have to carry balance month-to-month at certain point of time- say when you are in serious financial crunch or had to meet a huge expense all of a sudden.
Inform card issuing company while in problem
You must inform your card issuing company right away if there is some problem. It could be that you won’t be able to pay on time the coming month or the bill has arrived late- you will find contact details on your bill only.
Be within 30 percent of credit limit
You must stay within 30 percent of the credit limit. It’s because the credit score will consider your debt situation & low balance would ensure a dandy credit score for you.
The Don’ts
Don’t use the card for regular purchases
This is one of the most common mistakes to avoid with credit cards. Your card is not for your regular purchases and you must not waste it on clothing, coffee or gas as it can soon lead you to debt.
No minimum-only payment
You must avoid the habit of minimum-only payment every month as it would only prolong the time to repay the debt. Additionally, it would even pique the interest for you.
Don’t use the card to buy unaffordable things
Never use the credit card for shopping things that you won’t be able to afford. It only stimulates a borrowed lifestyle that can soon put you into unaffordable debt.
However, if you still find yourself in high credit card debt, don’t delay to seek help from the consolidating credit card debt programs.
