The holidays are drawing near which means you might be tempted to swipe your plastic to purchase some presents. While it’s not wrong to admit that credit cards can be extremely useful, they can also be a pain. It’s the latter that will leave you with costly fees, debt, ruined credit and interest charges.
So, when using your credit card, try as much not to commit these mistakes as they can haunt your finances for a very long time.
The concept of a credit card is great: when you don’t have money on hand to buy something you need, you can charge it to your card to be paid over a course of time. However, it’s when you start missing payments or pay late that gets you so deep in financial trouble.
One of the best ways to avoid credit card woes is to pay online because the transactions are instant. Also, if your issuer offers email prompts or text reminders, it’s best to subscribe so you’re always reminded when your bills are due.
Another thing you can do is swipe an amount you know you can pay within the allowed period. Sure, you want to swipe that flatscreen TV, but can you actually pay it within the specified period? This is why it’s important to check your finances first to know if you can spare the specific amount for a certain period.
Not paying at all increases your fees and interest charges. Avoid this at all costs because you’ll end up with your account frozen and a damaged credit history.
The numbers that make up your credit card can be wielded for fraudulent reasons. So, refrain from giving this out lightly. If you really need someone to make charges, make them an authorized user on your card instead. By doing this, they will have their own card with privileges you can revoke when necessary.
Credit cards offer a convenience that is much needed in this day and age. However, improper use of them can lead you to financial woes that can be very hard to get out of. So, keep these tips in mind when using your credit card.