Tips on How to Use Credit Cards the Right Way

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Much has been talked about getting into the trap of credit card debt and paying a huge amount as interests due because of revolving the credit. There is much talk also, on the ill effects of spending, tomorrow’s money, today and swiping the plastic indiscriminately. To certain extent it is true, but there are more benefits when you use your credit card wisely. It is the will to control your spending spree or buying binge that will ensure that you are not among those who want to eliminate credit card debt.

It is a prestige for anyone to carry a credit card (if not two) on their wallet, and flash them with pride at the checkout counter where a purchase is made. But more than the prestige and the pride you get by flashing the card, it is the responsibility to pay the monthly bills on time that will increase your credibility with the credit card companies. What will help to avoid getting into the trap of over spending and the difficulties to come up with the payment on the due date itself if not before that? Here are some pointers that will help.

Plan Your Expenses Well

Have a cardinal rule that you will use one card for your expenses related to official purposes and another one for your personal. This will ensure that there is no cross over expenses where in a huge amount spent like a hotel bill for a business trip is paid through your personal card and a valuable household item on the other way. By having a strict control over this segregation lot of last minute rush to pay on time can be avoided.

Avoid Adding Cards to Someone

It is a standard practice to the Credit Card companies to issue adds on cards to spouse. Unless a clear track is kept on the spending through the add on card, you are in for a surprise when you will receive the next cycle bill for your card. To the best possible extent keep a track of add on cards, or if possible get a separate card for your spouse. Or if you really want to share your credit with someone, don’t forget to set-up a credit limit.

Be Aware of Billing Cycles

Time your purchases in tune with the billing cycle of your card. By this you will enjoy a full 30 days of credit period that is free from interest. If the purchase is not that important, you can push the payment for that for the next billing cycle if you wait for the current billing cycle date and start purchasing from the next day.

Don’t Swipe Your Card Indiscriminately

Think twice before you make a decision to purchase an item or a service through the card. Is it really necessary? What arrangement I will make to meet the payment for this purchase when the bill arrives? Questions like this will help to curb your urge to spend and you will be making purchases more judiciously.

Having a credit card is not bad at all as most people think or say. As long as you know how to control yourself and know how to use your card wisely, you will be able to enjoy the benefits that card companies offer. So if you don’t have one right now, learn how to get a credit card conveniently.

Additionally, credit card is a convenient method to pay for things without worrying about your cash being robbed or making purchases online. Further utility bills can also be paid from home without waiting in the queue at the counter. On a special occasion to make a purchase, when you are out of cash, credit cards are there to help you get through a rough time.

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