Credit cards and debit cards are the most common items in most of our lives. People who are working the MNCs or even government companies are most aware of Credit Cards as well as Debit cards. Where as most of the students who are away from their parents access the money from the ATMs using the debit cards only.

Debit and credit cards look alike, but they’re two entirely different payment methods. While a credit card is a "buy-now, pay-later" tool, a debit card draws funds from your bank account. Since your purchase is automatically deducted from your bank account, make sure you have the money available now to cover what you buy .

Credit Cards and Most important points to remember

Credit cards lets you to spend money without having it to be with you. You will have to pay the money later as specified by the contract between you and your bank. So you should be more careful while dealing with the credit cards. Card Agreement Note the grace period, annual fees, cash advance fees, finance charges etc. Look for the cards which offer free for lifetime. Once you received your credit card, read carefully all documents bank sent.

Make sure to up to date with your contact details
If you change your name or address, notify your lending institution immediately. You don’t want to risk a late payment. Also contact your lender if you cannot make a payment on your account for any reason and convince them that you will pay the dues after some time. They might be able to arrange special payment options that help you avoid credit problems.

Use the credit available to you with care
Keep track of your purchases and use your card wisely. Do not use the card to the full extent of available limit. You will face problems in paying the amount if you overuse and their by you will attract high interest rates.

Do not exceed the credit limit
Exceeding your credit limit is considered a violation of your account agreement and may result in additional fees or penalties, or the freezing or cancellation of your account. So do not use the card exceeding your credit limit.

Pay off your balance within the grace period
Always try to pay off the entire amount in the same month you spend. So that you can avoid the interest rates which will ranges from 30% - 50% per annum.

Make more than the minimum payment
If you can not pay off your total balance each month, then at least try to pay more than the minimum required. If you pay only minimum amount all the time, you may need more than 3-5 years to pay the full amount and may require you to pay interest than the amount you have spent.

Never delay payments, you may incur huge penalties
Be sure to get your payment in before the due date to avoid a late fee and possible credit damage.You may face problems in future for getting loans etc. if you do not pay the dues on time for many number of times. You may be declared as default in case you continuously stop paying the dues.


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