It’s advisable to understand the proper usage before handling a particular tool. This is applicable with your plastics as well. Specially for beginners who are new on this field. Remember, if you use your cards responsibly, then you’ll be able to meet your every need without accumulating debts. Remember, credit cards can be the big sources of financial problems as well. Because, most of the times, there is a common tendency to use credit cards in a wrong way. And the result is huge burden of credit card debts. So, It is very important to know how to use the credit cards wisely so that you don’t fall into any financial trouble in coming days.
6 Credit card tricks for beginners
Here goes some useful tricks that helps beginners to use their plastics safely and in an effective way.
1. Take wise decisions regarding purchases
You need to take wise decisions when it comes to making any purchases. Ask yourself that you just want something or it’s actually your need. Don’t splurge on items that you don’t need.
2. Buy what you can afford only
Don't treat your credit cards as free money. Remember, credit cards allow you to purchase anything. But, you need to pay off the bills on time. Try not to buy things which are beyond your affordability. So, it will be very difficult or almost impossible for you to pay it back. And you may accumulate huge credit card debts.
3. Negotiate for a lower interest rate
Make sure you’re getting the best deal with your plastics. You need to assess the interest rate on your cards on a regular basis for this. Negotiate with the creditors in order to get the best possible deals.
4. Use cash to purchase items of daily use
Try to use cash instead of credit cards while buying daily household items such as: foods, clothes, household things, school supplies etc. This is because you’ll be consuming these goods already before the time comes to pay it off and it becomes very difficult to keep yourself motivated towards the payment for things that you have already consumed.
5. Use more cash and less credit
Try to use cash as much as you can. If you’ve the money to buy something, then you must use the cash instead of using credit. This is to be done as if you do not feel like paying for something now, then there are high chances that you’ll not want to pay for it in future. Thus, you should pay as much as you can in cash.
6. Read the agreement carefully
Remember, understanding credit card’s terms and conditions is important. Almost each credit card company has different terms and conditions. Some credit card companies charge annual fees, while other has different policies. So, you need to read all the guidelines and terms thoroughly to take the right and favorable decision. Try to get the all the answers of your queries from your issuer.
Conclusion
You need to protect your credit cards to reduce the chances of credit card fraud as well. Keep all the receipts in a safe place. Check the statement on a regular basis (once a month). Ask the card issuer if you find any errors or any transaction that you don’t recall . Incase, you lost your card, you should report a lost report in your local police station and inform the company to block your card.