Credit card has been a companion for few but the most has been sufferd from. Credit cards are always user friendly to you and that is the purpose of issuing a credit card by the bank. However, there are hidden benefits to the bank from mechants using credit cards. Although there are benefits, there are some more benefits to the bank if the card holder does not pay their balances on time. If the card holder is not paying in full at each month, then the bank will start earning on interest.
Have you heard of grace period? Banks offers various grace periods on their credit cards so that if the balance was settled within the given grace period, there is no hidden charges and the bank secretly does not want people to pay their outstanding on time.
Since I believe and many people asked from me to share how I manage my credit cards, I have created below few points on how I manage my credit card on time. So I have three credit cards based on my income. I do have several method of card management.
Readthrough the below list of hints and tips on credit card management. There is a bonus point also given below for your convenience.
1. Prioritize what you buy
We’ve all used the word “need” to describe something we really just wanted badly. Using your Credit Card responsibly means recognizing which things you need and which you just want. You should give priority to essential purchases and payments before indulging in things that you could do without.
2. Check & double check
Read through each transaction on your Card statement to be sure that you were charged the right amount for all your purchases and there are no unauthorized transactions on your Credit Card. If there are any discrepancies, report them immediately.
3. Start with just one Credit Card
This way you can keep your payments manageable. Several balances and due dates can cause confusion.
4. Not all Credit Cards are created equal
Some charge annual fees, while others charge fees for balance transfers, cash advances, exceeding your credit limit, or other actions.
5. Be safe rather than sorry
Credit Card fraud and theft are risks for the modern-day consumer. Most Cardholders aren’t liable for fraudulent charges on their cards, but consumers still have a responsibility to keep their information safe. In case of loss or theft of your card, you need to inform the bank immediately to have your Card de-activated.
6. Maximize rewards & benefits
Credit Card rewards, such as points toward merchandise, airline miles or access to exclusive clubs, have become popular with consumers. Credit Cards has always offered “Real Value Deals” so cardholders enjoy the greatest of discounts at a wide range of retail stores, hotels, restaurants and hospitals as well as on airfare and duty free shopping. Therefore, you need to keep yourself updated about the deals and offers available to you to maximize on benefits.
7. Balance your balance
As long as you pay your balance on time and in full every month, you will never pay a cent in interest or late fees. Register online for instant access to your Credit Card account information. Log in frequently to ensure that you are not spending more than you can afford.
8. Protect your PIN
PINs are becoming as prevalent as passwords and are no longer limited only to automatic teller machines. Many websites now require entering a PIN as an added safeguard when purchasing anything online.
Keeping your PINs a secret may mean the difference between having savings and having nothing. Don’t write PINs down, carry them in your wallet or save them on the computer. Do not email passwords or PINs. Memorize both instead.
This is a bonus point to all my followers, what I do on a monthly basis that I made my on credit card reconciliation and identify what payments I have made in excess of last month and try to manage my payments.
Moreover, I use my credit card to acquire fixed assets rather than buying groceries or fashion items.
9. Read the fine print
Not all Credit Cards have the same terms and conditions. Do your research before you sign up so that you don’t get hit with hidden fees and changes in your annual fee or interest rate. Choose the card that gives you the best of everything.
10. Purchase only from secure sites
Before you enter your personal financial information, double-check the site’s security. Make sure you are on a secure form, and don’t do business on sites you are unfamiliar with. Check to see if the form is secured by a company.