If you are a newbie in using a credit card, then the chances of its misuse and abuse increase as evil-minded people are always looking for a way to sneak into your credit card details and then misuse it.
But along with the evil-minded people, your carelessness can also turn your dream of capitalizing on the benefits of credit cards into a nightmare. The most targeted users of hackers are teenagers who get their first credit card from their parents and they easily fall prey to false offers like free money and bonuses which are offered to them through email, SMS, or even a phone call.
This could lead to a debt trap and it can turn out to be quite frustrating. Using your credit card correctly is imperative. If you want further guidance on credit cards and other banking-related affairs, it may be best for you to contact a local branch, and have a look at credit unions on Houston’s website for more information.
Expertise can help you make a more informed decision when deciding if one is right for you. If you want to use your credit card wisely then you need to have the right knowledge of its usage. So, let’s look at the top 5 tips that can help you to make your credit card work for you, not against you.
1. Strict Spending
Due to the easy availability of the credit card for everyone, most of the people fall into the trap of overspending. With so much financial freedom with a credit card, many people spend more than they can afford and this happens mainly because you are not asked to pay the money upfront. Such practice can cause you serious trouble at the time of repayment and can hamper your financial stability.
You can register your mobile with your credit card to get regular updates regarding your spending and this is a smart way to keep things under control.
2. Don’t Ignore the Rewards
You shouldn’t ignore the booklet that you get with your credit card because it will give you a brief detail about the benefits of the credit card and the rewards it offers. Your credit card can act as the door to the world of mind-blowing discounts and reward systems. Some of the most attractive and unique rewards that you get through your credit card are lounge access, special service at the airport, etc. By collecting more and more points through your credit card, you will be able to get free movie tickets, discounts on electronics, and even free flight tickets as well.
3. Keep your Card Safe and Secure
When it comes to the safety of the credit card, then the CVV number and the card PIN should be given priority over all other aspects. If you want to keep your card safe and secure then you should never disclose these two numbers to anyone and in any case. You can check your CVV number on the back of your card. You should also avoid skimming while handing over your card to a salesperson behind the counter.
Along with that, you also need to use only trusted and verified sites when it comes to credit card payments. Many fake sites will first ask you to enter your credit card details and then they will start taking money out of it without your consent. So always check the authentication of the website before making any payment from your credit card.
4. Don’t Fall for the Minimum amount of Payment
At the time of repayment, you must be getting information from the bank about your due date, the amount due, and the minimum amount payable. But you shouldn’t fall for the minimum amount in credit card repayment because after paying the minimum amount, the interest on the outstanding amount will keep on growing and this interest rate is very high in comparison to the common interest rates. Use this credit card interest calculator if you’re ever unsure.
So, if you will leave some amount outstanding in your current repayment, then the credit card statement for next month can be quite inflated. Always try to pay the full amount to avoid the high interest and extra burden.
Also Read: Protect Your Credit Card with Simple Tips
5. Set your Limits Wisely
If you are too worried about overspending in a month through your credit card, then you can ask your credit card provider to lower your limit to something that you can manage every month. This request to lower your credit card limit will be highly welcomed as the credit card provider will always want you to pay the full money. This will lead to changes in your credit card’s limit immediately.
There is no need to stick to a limit that can provoke you to overspend or which can destabilize your patience with your credit card spending.
So if you want to make your credit card work for you instead of against you, you need to be mature, good at decision-making and should have control over spending. A credit card can fulfill all your financial wishes without any trouble, but only if you take proper measures in its repayment, security, spending, and other features.
