How to use your credit card effectively

A credit card is a convenient way to pay for most things today. You can shop with it online, swipe it at gas stations, and use it in a mall among many other uses. However, while it is convenient and efficient when compared to money payments, it may incur costs you may have not intended. Thus, it is important to know how to stay in control of debts you incur, while at the same time enjoying its convenience. A major advice for credit card holders is to pay for the card on time. This minimizes payment of late payment penalties or the incurred interest rates. It is highly advisable to set up a direct debit card to offset some of the payment by committing at least a minimum amount. This reduces the risk of late payment penalties. Furthermore, if it possible, you may want to get rid of your credit card debt to eliminate interest rates incurred when you pay a minimum amount. It is tempting to overspend with your credit card. Therefore, t is highly advisable to spend only the amount you are able to repay. If you find yourself overspending, then it would be wise to contact your provide and ask them to reduce the amount of credit you can use. However, there comes a time when you need to increase your credit limit to purchase something. In this instance, contact your provider and ask for an increase that you will be able to pay. You should then aim to pay as soon as possible then revert to the low credit amount. While you may tend to use your credit card for emergencies, this is not encouraged in the long term. You should not depend on this as in the long term, it will plunge you into greater debt. You should also be wary of store cards. Although they earn reward points, they usually have hidden fees. Be sure to closely examine their terms and conditions and weigh the benefits of having them. You should always keep track of your credit card receipts. This ensures you are in a position to check your spending and if you have been charged the right amount. Also, check out for charges that may appear suspicious such as large and unusual charges, duplicates, or charges by stores you do not recognize among others. Jump to top

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