Credit card is a way to freedom from cash but....

Most of us who use credit cards may feel secured and free from keeping cash in our wallets. However, the use of a credit card may lead to bigger problems if used for unproductive purpose or just for fun. The credit card must be the last option for a middle class person who has limited resources.

Some of us use it because it is easy to use

Yes, that is a fact because this is easy to use a credit card therefore we make some of the expenses, which otherwise not were not necessary if we had no credit cards in our pockets. We, with limited income should use it with a planning and we must fix a limit to avoid complications at a later stage. What I suggest is that we should never spend more than half of our allowed limit unless absolutely necessary. In addition, we must have mobile number registered to track our expenses and get immediate information of our every transaction.

Pay in full

Banks issue a bill in shape of card statement every month against your credit card for repayment of the amount you spent during the month. Delay in repaying on due date or after due date attracts delay charges and heavy interests also. This is also advisable to use internet option for repayment in place of cash payment because it shows and credited in your account instantly. This is also advisable to pay in full because part payments considered as no payments and attract interest and late payment penalties.



Banks are ready to increase your limit

Banks find it profitable to increase your limit according to your monthly income. They offer you for the same once you use your limit some times without your request. Once you have your cash limit increased, you always find your self more inspired to spend that much more. However, that is not wise and makes a big difference on your savings. That prompts you for expenses those are not necessary and avoidable. Keep away from such offers coming from your bank/banks because such offers will prove costly bargains in the end.

Do not use Credit card to withdraw cash

Credit cards should not be used as an ATM card to withdraw money in cash because this attracts an interest of 1.5 to 3% per month according to terms of different banks and your own conditions. The amount you withdraw from bank through credit card in shape of cash has neither any grace period nor has any other benefits, which you avail while shopping through credit cards. Please keep in mind that cash transaction also attract transaction fee while you withdraw cash through your credit card apart from the regular monthly interest. Therefore, this is advisable to avoid use of credit card for cash withdrawal as well as for making unnecessary unproductive purchases.

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Never share your information

This is not advisable to share information of your credit card with any one. You should not allow any one else to use your credit card in any case. The CVP number written on the back of your credit card is a very crucial, never let any one reach it to keep your credit card safe. Your credit card is your liability therefore, you shall have to repay for the same irrespective of who used it. You must keep a close look while swiping it in a store because some bad elements have discovered the ways to clone you card or copy the information. Always go on a secured website while using your card for online transactions.

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