The Dos and Do Nots For First - Time Cardholders
So, you finally got your very first credit card.
That's good news! Now, you can do cashless purchases with just a swipe of the card.
Easy and convenient, right? However, abusing that power does have its serious consequences.
Take debts for example.
Leave your bills unpaid, and you will be burdened with huge debts faster than you expect.
That would certainly hurt your credit score and your financial future.
Today, statistics show that consumers have already accumulated a whopping $900 billion of credit card debt.
And the figure is expected to balloon every year.
Don't be a part of the statistics - use your plastic card wisely and keep your finances debt-free.
Here are the dos and don'ts you have to keep in mind before you attempt to charge anything to your card.
The dos of using credit cards: • Make sure you pay your bills on time.
Preferably, pay them earlier than the due date so that you won't forget the payment altogether.
You will end up paying the penalties or interests when you fail to make timely payments.
• Pay the total balance.
But if you can't pay the entire amount, then be sure that you pay at least the minimum amount due every month.
• Use your card only when you need it.
Certain emergencies such as having to fill your car's empty gas tank or visiting the E.
R.
make using credit card a wise move.
Use it only during emergencies when you have no cash in your pocket.
• Lower your interest rate.
Yes, it is possible.
You can contact your credit card provider and ask for a reduction of your card's interest rate.
The company will surely grant your request if you are able to prove that you have never failed or been delayed in paying your credit card bills.
• Be wary when shopping online.
Make sure that the website is 100% secure before you give your credit card information to make a purchase.
Otherwise, hackers may gain access to the details of your card.
Before you know it, these hackers might have already maxed out your card.
• Maintain a monthly budget.
Many owners of credit cards tend to just splurge and then get the shock of their life when the billing statement arrives.
This is a very possible scenario if you don't keep track of your expenses, both with cash and plastic money.
The don'ts of using credit cards: • Don't carry your card with you-especially if you have already owed the bank a huge sum of money.
Be sure you have paid off all your debts before you can use that card again.
• Don't max out your credit limit.
A lot of credit card owners fall trap to this mistake.
They tend to spend until they reach the limit, and when the due date draws near, they have no idea where to get the money to pay for the bill.
The key to avoiding this situation is to buy only what you can afford.
• Don't buy something if you are not sure you can pay it in full.
That way, you avoid accumulating debts.
• Don't make cash advances.
As much as you can, avoid using your card to withdraw cash from your credit-you will only get more debts in the future.
On top of the high interest fees, banks also charge cash advance fees to their customers.
That's good news! Now, you can do cashless purchases with just a swipe of the card.
Easy and convenient, right? However, abusing that power does have its serious consequences.
Take debts for example.
Leave your bills unpaid, and you will be burdened with huge debts faster than you expect.
That would certainly hurt your credit score and your financial future.
Today, statistics show that consumers have already accumulated a whopping $900 billion of credit card debt.
And the figure is expected to balloon every year.
Don't be a part of the statistics - use your plastic card wisely and keep your finances debt-free.
Here are the dos and don'ts you have to keep in mind before you attempt to charge anything to your card.
The dos of using credit cards: • Make sure you pay your bills on time.
Preferably, pay them earlier than the due date so that you won't forget the payment altogether.
You will end up paying the penalties or interests when you fail to make timely payments.
• Pay the total balance.
But if you can't pay the entire amount, then be sure that you pay at least the minimum amount due every month.
• Use your card only when you need it.
Certain emergencies such as having to fill your car's empty gas tank or visiting the E.
R.
make using credit card a wise move.
Use it only during emergencies when you have no cash in your pocket.
• Lower your interest rate.
Yes, it is possible.
You can contact your credit card provider and ask for a reduction of your card's interest rate.
The company will surely grant your request if you are able to prove that you have never failed or been delayed in paying your credit card bills.
• Be wary when shopping online.
Make sure that the website is 100% secure before you give your credit card information to make a purchase.
Otherwise, hackers may gain access to the details of your card.
Before you know it, these hackers might have already maxed out your card.
• Maintain a monthly budget.
Many owners of credit cards tend to just splurge and then get the shock of their life when the billing statement arrives.
This is a very possible scenario if you don't keep track of your expenses, both with cash and plastic money.
The don'ts of using credit cards: • Don't carry your card with you-especially if you have already owed the bank a huge sum of money.
Be sure you have paid off all your debts before you can use that card again.
• Don't max out your credit limit.
A lot of credit card owners fall trap to this mistake.
They tend to spend until they reach the limit, and when the due date draws near, they have no idea where to get the money to pay for the bill.
The key to avoiding this situation is to buy only what you can afford.
• Don't buy something if you are not sure you can pay it in full.
That way, you avoid accumulating debts.
• Don't make cash advances.
As much as you can, avoid using your card to withdraw cash from your credit-you will only get more debts in the future.
On top of the high interest fees, banks also charge cash advance fees to their customers.
