Tips for using Credit Card

Most people say credit cards are dangerous and we will get huge bills. I am against this opinion. If it is properly used, it will become like our companion.

1. First thing you have to know about your card is the Statement Date. For eg. if the statement date is 5th of every month, always try to make your purchases after the statement date so that you will more than 45 days for repaying the amount.

2. Before you swipe your card anywhere, check with the shop whether they are adding any charges for it. Usually some shops will charge 1% of the billed amount as tax.

3. Always pay your credit card bills before the due date as most banks will put Late payment charges.

4. Don't withdraw cash from your credit card at any cost. Because the interest calculation starts the moment you withdraw cash from it.

5. Don't use your credit card in websites which are not known to you as your details can be stolen and misused.

6. If your credit card is stolen, call the customer care of the bank immediately and block it. Otherwise if somebody misuses the card, you have to pay the bill for that as many banks don't have the insurance for lost credit card.

7. Don't use more than 50% of your credit limit unless you are sure that you can repay it quickly.

8. Don't give the details of your credit card to anyone as there may be a chance of misuse.

9. Don't pay only the minimum amount.Pay the debts as much as possible every month so that the interest does not get added much.

In a nutshell, use credit card as an alternative for taking cash and not as a money borrower machine.