Win or Lose: It’s Up To You
One of the most convenient money solutions in today’s generation is the credit card. Faster and easier transactions are done with just a swipe of these plastic wonders. It can be safely concluded that through this factor, the consumer culture was taken to another level.
Purchases can be made in an instant. The idea of getting what you want or need on credit opened many opportunities both for consumers and the producers. Companies have realized this opportunity and opened their doors for credit card payments.
Credit cards offer so much if used right. The thing is, if you are irresponsible or if you easily give in to your impulses, the credit card is also the fastest way for you to get yourself drowned in bills and debts, a trip to a financial quicksand.
Before getting a card, you have to learn how to use it first.
1. Start with a sound plan.
The only way you can benefit from a credit card is to be wise about it. Using it wisely means you carefully planned how to use it. Ask yourself why you need it; or if you need it. Another important question to ask is when to you use it.
Establish a rule on when to use it. This means that you also need to determine how payments are to be made and the amount of credit limit you will set on yourself. Strategically budget your money so that you will only use the credit card when you really need it. It also means that you get credits you can pay on time.
If done right, you will get one of the most valuable rewards you can have on earth: a good credit history.
2. Know the company.
Since everything about your relationship with the credit card begins and ends with a contract, read everything about the interests, fees, and also the rewards.
Check whether the annual fees are reasonable or if there is any. Different cards are designed for different users. Keep in mind that you have to set yourself on companies that suit your buying habits. Know how it affects your transactions, from online shopping to overseas deals.
3. Follow things up.
You should be up to date when it comes to your debt. Check whether a due is up or you have set payment methods that are just too long. As much as possible, pay debts quickly. If not handled well, overdue dates could rack up credits and keep interests at peak.
4. Reward yourself with company rewards.
There are so many perks that credit card companies offer just to get more clients. In choosing a credit card, get familiar with the rewards they offer. Use them and use them well.
5. Develop good habits.
Never use the card as a daily mode of payment. Doing this is as good as setting yourself up for mountain loads of debt. Being used to the habit of getting the card out of your wallet for every transaction does not help you with wise usage of it.
Make wise decisions with the things that you will buy. If worst comes to worst, inform your creditor ahead of time if you will not be able to make the payment on time. Some advisers say that it is best to rely on your credit with the amount just around 20%-30% of salary.
The keyword for credit card usage is to be responsible and to be objective. Use it wisely.