Finance Blog

How to use credit card responsibly.6 top tips to use credit card responsibly.

 According to recent research , the average Americans have credit card debt almost $ 7200 each. Credit cards are useful things, if you use it properly. There are several benefits of credit cards for individual and businessman.

My friend use credit cards of three different banks. He buy things from hypermarket at bulk quantity . He use credit card to buy online mobile and laptop and other useful things. So, he received a discount of 10% 0r 15 % on his credit card. This facility is not given by cash delivery.

My friend also buy online different devices and pay online bills. He also make electricity bill and other bill with credit cards.

The most important things, he save cash and time. He make on time payments of bill in every 15th of month.

So, with good money habits credit card will give more security and facility to make payments online. If you make payments on time, then bank does not charge any annual charges , also your credit limit increase after six months. Especially , it will be helpful for businessman to make payment on time.

How Credit Card Work?

 

 Credit card allow you to facility to make purchase and pay bills after one month. A credit card help you to build credit and make purchase and pay every expenses. Credit card provides you a facility to manage your debt responsibility. Getting knowledge, how credit card works? You must know about benefits of credit cards.

Credit card is Secure for online payment.

  Once a time I have to pay some money to any person. So, I use card for online payment. There are no extra charges. Some people don’t use credit card wisely, they lose their credit ability and do not change their bad habits.
Here I have some useful tips for you, to follow , and enjoy the credit cards for a long time and also security.

 

  1. Pay your bill on time each month.
  2. Never pay bill late.
  3. Safe your card from suspicious persons.
  4. Build your credit every month.
  5. Credit card is connected to your budget

 

Pay your Bill on time every month.

 This is most important to avoid credit card debt to make payment on time. Credit cards allow to you some benefits, but it can be dangerous, if you haven’t paid bills on time.

A credit card allow to use money within limit and make payment on time. Otherwise, bank takes you some charges and eventually you suffer in debts. Use credit card for small payments and short period of time. It can not be use for amount of debts for longer period of time.

 

 

Never pay your bill after date.

     Use good money habits and not to make payment late. You can set your mobile as reminder for payment date also email. Some time bank give you a facility alert message to make payment. It is important to increase your credit worth and bank give increase your credit limit. It is easy plan to make auto payment . You asked to your bank to automate deduction of your bill from your account , so you do not need to track the bill.
You should know credit fees charges, in case of late payment & keep eye on your limit.

 

Safe your credit card from suspicious persons.

 There are two of credit cards. One is secure and other is unsecured credit card. Secure credit card need minimum deposit at least $ 500. Credit card are secure than debit card. If your card theft, of stolen , then you asked to bank for stop payment of your card immediately or you can freeze credit card or you can cancel your credit card for payment online. Your credit card information will be secure and safe. You should use your credit card in secure place not a public place wife network. 
Also you should not give your credit card to other people like your friends. 

 

Build credit card History.

 Credit card is like a loan , you have to pay a fixed date. Being a good customer , you pay regular monthly bills on time and few purchase every month to achieve the purchasing target.
If you fail to make payments on time, you do not build credit history.
If your credit history is good, then bank increase your credit limit and also reward yourself as good client.
You should maximize use of credit card to get reward. You check what are credit score during this month. 

 

Credit card is attached to your cash budget.

  You are wondering, how to best use of credit card, it is simple formula, use credit card with in limit.
When once your purchase limit if fulfill, then you keep credit card in drawer until the the next month start. You should check your monthly bank statement. How much purchase you made each month. 
Also check your budget is same according to your credit card. You can also create a emergency fund account .If your car break down or you lose your job, or serious illness. You keep small penny to your health every month or every week.

 

Earn Reward of credit card usage wisely.

 Earn 1 point for every single retail purchase. When you purchase extra, they can help you. You should use local business card, and exciting and travel reward. For new account, they give 5000 score point if you spend $ 1000 on purchase within three month or one month. It is different one bank to other bank. American bank give you digital wallets, if you pay bill with cell phone. Digital wallets are app of credit card of credit version stored in it.

They give you free of cost travel accident insurance. Where you children up to 19 years get insurance card in case of accident. This facility is given by travel with bus, air travel or ship or taxi. They cover your children all types of accident.

 

The Bottom Line.

It is better to use cash for purchase. Credit card has two aspect, one is strength and other is weakness. So, you spend it within limit.Some people use credit card above limit, nay suffer in difficulties.If you are not use properly credit card, thing other form of payment to avoid debt.

The best use of credit card is use credit card only for big purchase, and loan easily pay back every month. When you use credit card with good strategy , it will help a long way to your credit history and earn reward .If you are not follow good money habit to use credit card , then you pay high interest and also credit card debt and it is dangerous to your credit health.

 If you have any query about this topic, feel free to contact us, we are here to help you. If you have any story share with us.

 

Email at this address.  rasheedahmad296@gmail.com

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