- Personal Finance
How to use Credit Cards
Credit Card, the name itself says, you might be living a life 'full of debts'. Unfortunately, this holds true and same thing happens with most of the individuals holding the credit cards. But, this remains valid only if you are not paying your dues on time. In case, you are paying your card bills on time, you will never see a credit card as a burden at all.
Holding a credit card or two is not a bad thing. Indeed it is quite useful many a times and beneficial especially in case of emergencies; when you do not have enough cash in your account/pocket at the time of some urgency. But, make a habit to settle your bill as soon as you get the money. Otherwise you will definitely see it as a burden with heavy rate of interest and a life full of debt.
If you will use your card smartly, then you may find it very useful and helpful. These days, most of the banks are offering life-time free credit cards with no annual fees and any other fees except interest charges or late payment fee. But these charges alone can make your life miserable, if you will not pay the bills before due date. So, always pay-off your complete monthly bill on time to avoid these charges and use the privileged services that credit card offers you.
How to use credit cards effectively
Credit cards are supposed to serve you, not the other way
Whenever you get a new credit card, always spend some time to understand the terms and interest rates of your card, in order to use it effectively. You must carefully read each month's statement, as banks sometimes do make mistakes. Also, you need to make sure that no unapproved charges have been made. In case, you find something wrong or false charges in the statement, immediately call the customer care and ask for the reason. If you get satisfied, its good, otherwise simply request them to revert back those charges in the current bill only and make the payment for the verified amount only.
In the current age of internet and e-commerce, holding a credit card is necessary as most online companies and websites accept only credit cards. So it is must for you to have a credit card to enjoy the benefits of online services. There are some sites which offer discounts on online bookings and some great deals on various products. But do it wisely and don’t get much lured by these offers as it is not a gateway to free money and you will have to repay it eventually.
It is very important to know the difference between your needs and your wants. “Do I really need this?” is an important question to ask, before you dash to the checkout counter.
If you will understand the use of credit card and knows how to use it properly, then you can even save some money, just what you have to do is to be aware of your paying capacity before you make any transaction. And you may live happy always.
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