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Tuesday, December 11, 2012

11 Best Tips to use Credit Cards Safe and Wise

A vast majority of credit card users are unaware as to how their card functions and what rules they must abide with in order to incur minimal fees. Many of them don’t realise for the fact that they can put their credit cards to work. Instead of thinking it as an indispensible evil and subsequently paying penalties, interest charges and late fees one must duly comprehend the cost saving element of their card that is in-built in it. Here are a few basic but effective tips, how you can save money by the use of a credit card.
  1. Never carry more than one credit card. Although it may sound like financial conservativeness, it’s the right way to go. When it comes to plastic card- less is more.
  2. Avoid carrying a balance on your card as it is the most expensive way of borrowing cash.
  3. Prefer credit card over debit card – why to use your own money when you can get through the month on someone else's money.
  4. Always pay your card’s bills well within the prescribed time, thus avoid getting charged for late payment.
  5. Have a detailed look at your monthly statement and ensure that you were not double charged, received credits from all your returns and charged for purchases you never did.
  6. Opt for reward cards, so long you are spending money anyway, why not earn some points.
  7. Keep a check on your credit score as it will fetch you higher credit limits along with better rates.
  8. Avoid taking cash advances with your card as you are liable to pay interest from the very get go. It is exorbitantly expensive, hence should be avoided.
  9. Be within you credit limits to avoid penalties.
  10. Be caution to zero percent interest rate teasers as nothing comes without a price tag. It may be free for initial few months but usually it is adjusted as time progresses.
  11. Define your credit card budget so you don’t overshoot it.

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