Among the plastic cards ‘Credit Card’ is very popular as no liquid money goes out from your pocket at the time of buying. This is a popular way to purchase anything, even when you are not carrying liquid cash with you. But, it’s very much requiring to understand the clauses before use of the card. Several guidelines are there to use the card in a proper way which motivates new users to experience a safe buying. Let’s discuss.
• Read the clauses properly: This is the most important factor before subscribing to the credit card facility. You are required to understand the charges, different kind of rewards, rate of interest, etc. It’s better to compare the different credit companies’ rules and regulations and choose the one from which you would be getting maximum benefits.
• Do not use every day: This can be used to purchase different products other than the regular ones. The regular use of card becomes an everyday practice which leads to debt. For daily use it is advisable to carry liquid cash.
• Make maximum payments: It’s always good to pay the maximum amount to fulfill the debt which you have made through the credit card. Paying a minimum amount will increase the debt amount as the interest adds every month with the actual amount. Not only this, you also have to pay for a long period of time to fulfill the debt.
• Maintain the credit limit: A huge portion of your credit score takes into account the debt amount you have. Maintaining a low balance generates a good credit score. Moreover, lower balances are more convenient to handle than higher ones.
• Do not buy expensive things: Buying expensive things beyond your limit is a harmful practice. This only increases your debt and it’s not at all good to spend life on borrowed things. Purchasing necessary things is always good and helps you to keep your debt within limit.
• Avoid irregularity in payments: You may face tough situations at any point of life and forget to pay your regular payment on time. This is not a big issue as the service provider assists you to make payments on time and for this prior information has to be sent to the service provider. This also helps you to bring down the fine which they usually charge for late payment.
• Go for lower rate of interest: Different companies offer different kind of conditions and also the rates of interest vary from one company to another. Before choosing the credit card company you need to compare the rates of interest among different companies and choose the right one which offers lowest rate of interest.
• Go though the credit card statement: You need to go through the credit card statement properly and carefully. In the statement you may find mistakes regarding the payments, transactions and more. Not only this, you may also find unlawful dealings which were made without your consent. So, always go through the statement with utmost concentration, otherwise you might have to face worst situations.
