Talking about credit cards, I wonder why some people are crazy over these cards. They can never go out without it, as if their life is never complete without them. And most people give them some kind of boost whenever they carry it with them wherever they go.
Well, I do believe that it has its significant value. But in my opinion people should be very careful in handling their cards. I mean, yes it can give them the satisfaction that they want, it can give them the boost of personality that they are looking for and it can even make them feel good about themselves. But they should also bear in mind that everything in life has its own advantages and disadvantages.
That is why we should also remember that in every decision that we take, there is a great responsibility that is attached to it. Even in using credit cards, one has to know the dos and don'ts in handling them otherwise it can ruin their life, reputation and bury them under huge debts. Here are some things that you might want to consider first before you start swiping away your card.
1. Before we make a decision in getting a credit card, we must consider a number of qualities that we must possess. We must have a stable job and the income to support our accounts. If not we should be willing to make extra efforts for extra income in meeting our credit card payments.
We always have the option not exceed our credit limit by not using it all the time. We must remember that paying the items we purchased using cash is still the best thing to do. This will make us think twice or thrice before purchasing something and it will definitely save us from paying high interest by using our card. If we have cash, we must use it.
We can also save ourselves from our debts by monitoring and reviewing our monthly statements. By doing this, we can always prepare for the payments needed, for the interests rates and other dues that we have. Let us not wait for the due date before we pay for our payments; paying before the due date can bring us out from debts and will lessen the temptation to spend the money elsewhere.
2. This can also be our basis if we can still get other cards or not. We should not get more than one card then use it excessively, if we do not have the capability to pay for them. Remember too much of anything is not good and we should learn to be satisfied with what we have. One credit card is more than just enough.
3. We should be responsible card users. Remember that material things can only give us temporary happiness and satisfaction. We should not be materialistic nor compulsive buyers. We have to lessen ourselves in consuming material things especially if we do not really need it for the moment. We should only buy the things that we need so that we can lessen our expenses.
How To Use Your Credit Card or Debit Card - Video source: Youtube
How To Use Your Credit Card or Debit Card
To complete this How-To you will need:
Information about your credit and debit cards
Step 1: Read the fine print
Read the fine print. Find out exactly what sort of fees you're being charged. Is there a per-transaction fee associated with your debit card? Does your credit card charge a very high Annual Percentage Rate, or APR?
Step 2: Cover your charges
Only use your debit card if you have enough money in your checking account to cover your charges. Your bank might have high penalties for dipping below your minimum balance.
Step 3: Pay off immediately
Pay back money as soon as possible. If you do have to carry a balance, make sure you have a low APR. A small amount of debt can multiply into something large and unwieldy.
Step 4: Keep your cards safe
No matter which card you use, be sure to keep track of it and to keep the card number safe, and the PIN number for you debit card in a separate, safe place. Be sure to alert your financial institution immediately if your card is lost, stolen, or if you suspect it's being used fraudulently.
Tip: If you use your debit card to make a purchase, opt to use it as a credit card, allowing you to sign for a purchase rather than entering your PIN, which offers you more protection in case of theft.
Step 5: Use in place of cash
Great times to use your debit card are when your bank isn't in the area, meaning you'd pay a hefty ATM fee to get cash, or when you simply don't feel like lugging cash around. Enjoy the freedom!
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