7 Amazing Tricks To Get The Most Out Of Your Credit Card shares to you how to use properly your credit card and the benefits of using it.
I used not to own one because I don’t want debt. The old fashioned way which is via cash was my preferred way of payment.
I received numerous offers from marketing officers before from different card companies but would always shut them down right away.
However, I encountered a problem on my online payments because my debit card would not go through and it was causing me headaches.
Credit card was the only way, and since I don’t have one, I would ask favor from my workmate to use their card and just pay them when the bill comes. It was kinda annoying and so I wanted a card of my own.
Recently, I received an offer from my own bank and grabbed it right away.
What is a Credit Card
As everyone knows, it is a piece of plastic that is issued by a financing institution like banks that allows you to purchase on things on a credit (utang). You will have a credit limit in which you are only allowed to use up to a certain amount set by the card issuer. Essentially, you are incurring debt when you use your credit card.
7 Amazing Tricks To Get The Most Out Of Your Credit Card
- Convenience. The best advantage of using it is convenience. Many stores/merchants allow it when you purchase so you don’t need to carry large amount of cash. Online purchasing also needs this card so having it is such a blessing.
- Rewards – You will receive rewards when you purchase using your card. You save in the process as you spend on your necessities.
- Tracability – I love using this card because of its easy tracability. You may be able to trace your transactions online if you link to your online bank.
- Use for emergency – Although I do not personally advocate using it for emergency, it is a relief having it when you need it the most.
- Purchasing power – When you carry this card, you will have purchasing power and that is amazing.
- Builds credit history-If you have this card and you are disciplined in using it, you will be able to build a good credit history that you may be able to use when you apply for a loan on big ticket items in the future.
- Overspending- One of the most thing that you have to be watchful when you have it is overspending. It is very easy to overspend if you lack discipline in handling your expenses.
- Interest and fees: Another thing you have to be watchful of are the interest and fees associated with your card. It can be heavy in the pocket.
- Fraud: Since cards are easy to use, many unscrupulous individuals target it via fraud.
- Mounting Debt: If you are not disciplined using your card, you will bear a mounting debt , thanks to huge late fees and interest charges. So be sure to use your card on expenses that you are capable of paying. After all, it is a credit and you MUST pay it full on time. If you don’t manage your debt well, you will be buried in debt and compound interest will be working against you.
Treat your card as a cash as it gives you purchasing power. Having it is a responsibility and be careful on your spending. After all, it is still a credit and you need to pay for it.