What is the right time to swipe your cards? Many of you out there have thought of this question several times. Isn’t it? It’s a known fact that cards have made life faster, easier and more convenient. But, still there are certain occasions when using cash is a better alternative.
List of alarming situations: Avoid paying with credit and debit cards
Is it the correct situation to swipe? Has anyone of you thought of this question before making a purchase with your card? If not, then this is the time to rethink about it. Though cards are totally apt for making purchases, but there are certain circumstances when, they should be kept in the wallets. Check out the below circumstances, to know when you should avoid swiping your cards:
1. When hit by impulse-buying pangs - When you want to buy everything you see, then you shouldn’t use your credit or debit cards at all. This is the most risky situation to use your cards. It’s foolish of you to use your cards in your day-to-day small and insignificant purchases. One day, all those tiny purchases will add up and it’ll be difficult for you to keep track of them.
According to Kelsa Dickey, a Tempe, Arizona-based financial counselor, “If you use a credit card for day-to-day spending, it's very easy to not pay attention to how much is going on there and accidentally overspend.”
2. When investing in major purchases - It’s quite enticing to pay for a major purchase, such as a car with your credit cards, especially if you get reward points. This is good, only for those who can repay their balance on time and also for those who’ve sufficient money to pay the high-interest rates. By chance, if you default on your payment and are lacking funds, then you’ll be charged with a handsome amount of late fees. So, it’s better to make your choice between a traditional loan (with a reasonable interest rate) and hard cash, if you want to avoid additional fees.
3. When you’re close to your credit limit - Don’t use your credit card for any kind of purchase, when you’re near your credit limit. This is an unsafe situation because you can pile up debt, if you cross your credit limit. Ask your credit card company to raise your limit or switch to a card with a low balance, if you don’t want to get into this difficult situation.
4. When you’re intoxicated - Sometimes it happens that, you’re not able to control your decisions when you’re drunk. Making any financial decision in that situation will backfire. So, it’s better to gain your senses back before making any major financial decision.
5. When you have debts - When you already have debts on your cards, then it’s sensible to not use it for any other purchases. This will make you more tangled into credit card debts.
6. When you're traveling abroad - If you’re traveling abroad and using your credit cards for transactions, then remember, you need to pay a charge for foreign currency transactions. Do keep in mind that, the exchange rate fluctuations determine the amount you’ll have to pay. Instead, pick up a prepaid currency card to help you better.
7. When you bear multiple cards - When you’ve too many cards, then it’s important for you to keep a note of all its billing dates. It’s important to keep a note of the due dates of each card. Avoid using those cards which are closer to the due date. Instead, use those cards which are far off from the billing date. This’ll help you to get a higher credit period and make more sense to your finances.
8. When you don’t trust the person - Both credit and debit cards are crucial. Remember, your credit and debit cards are different. Unlike a credit card, a debit card is a direct key to your bank account. If a fraudster gets hold of your debit card account number, then you won’t be able to see your hard earned money anymore. All your money will disappear instantly. So, it’s advised that don’t hand over your credit and debit cards, if you don’t trust the person or device handling it.
Few shaky places to avoid swiping credit and debit cards
Identity thefts and security breaches are always in the news. This is the situation where you might think that - is it safe to use debit and credit cards anywhere? Yes, you can use your cards anywhere, but you have to be extra cautious. Always remember that your debit card is directly linked to your bank account. So, be very careful while making any purchase with that. Look below to know the 4 most common places where you should be alert before swiping your cards:
1. Gas stations - Gas stations are the most common places for the tricksters to attach skimmers (electronic devices that record your card number) to gas pumps or payment registers. It’s always suggested to use cash to pay at the gas stations.
2. Online retailers - Con artists are becoming expert at hacking retail websites and stealing consumers’ personal and payment information. Avoid debit cards for online transactions and keep your bank account safe during the fraud.
3. Unfamiliar ATMs - Nowadays, scammers are using a technique called the “wiretapping” to steal consumers’ personal information. In this technique, a criminal arrests your card data by inserting a device through a small hole in the ATM, which is then covered by a fake emblem. So, it’s always instructed to not use any unfamiliar ATMs, as you might not get to know if there is something unusual about the machine. Instead, use credit cards or withdraw some cash from your bank account.
4. Restaurants - This is another place where you should avoid using your cards. Waiters and waitresses have often been caught in the restaurant, passing credit cards through a skimmer for an illegitimate transaction. So, it’s always better not to give your card to a person whom you don’t trust. Again, hard cash is a better option here.
A final caution
Self-protection comes first. Protect yourself from financial frauds. Think twice before swiping your cards. Fraudsters are everywhere. So, be very cautious of when and where you’re swiping your cards. Try to use cash mostly to keep yourself away from the victimizers and to build a strong financial background. Use your cards in such a way which will help your money to grow.