A credit card is a payment card which enables holders to pay for goods and services on the basis of an agreement between them and the card issuer. A lot of individuals believe this card is a getaway to all things wonderful and can be used endlessly. It can definitely be used freely, but if one is not careful, they may find themselves in debt or worse situations. It is essential to know certain tips and guidelines before beginning to use a credit card. The following has been detailed below in this article. Use the card instead of cash When you have a credit card, make use of the card whenever you spend money. Avoid debit cards and cash. The reason being that you get more time to pay the credit card bill. Also, when you use your credit card more often, you can earn reward points. The more you use your card, the more points you get which you can redeem for various things. Try to pay in full When you get your credit card bill, you can pay a minimum amount or the full amount. If you have cash in hand, then pay the bill in full. The interest rates on credit card are very high and if you pay only the minimum amount, you will need a long time to repay the bills. You will also be paying a lot of money as interest. Try to pay the full bill or more than the minimum amount that is due. Get the appropriate rewards card Depending on the type of expenses you incur, you can opt for the right kind of rewards card. These reward cards will give you points that you can redeem to buy gifts or can use it for cashback. If you travel a lot by car, you can get a card that gives you points every time you fill up your tank. If you fly frequently, then you should choose a card that gives you air or flight miles. Whenever you fly you get points that you can redeem to get discounts when you buy flight tickets the next time. If you shop a lot, you can choose a cash back card that gives you cash back for purchases you make. You can use that cash to adjust your bill. Don’t be tempted to spend extravagantly When you have a credit card with a generous spending limit, don’t be tempted to spend it all. Don’t spend as per your limit, rather spend when you need to. With one or more cards, you may be tempted to spend it all. It is easy to swipe a card when you don’t have to pay cash but you can get caught in a debt cycle with mounting bills. So avoid the temptation and buy only what you need, make a budget for the month and stick to it. Keep the charges in mind There may be many charges levied on your card like late payment charges, charges if you exceed your limit, charges for using the card to withdraw money, etc. These charges will be added to your bill and it is essential to keep this in mind when using the card.
