Tips For Using Your Credit Card Responsiblyby Divya Kapoor Finance Advisor
At present, most Indians are gradually shifting to cashless monetary transactions. Technological advancement is helping people to pay for different purchases quickly without cash. Things like a debit card or credit card can help you to enter a pin code or paying in a place where the cards are accepted. Due to this reason, the youth is dramatically tilting towards cashless transactions, and taking debit and credit cards in massive you do credit card comparison also before applying. Furthermore, all-round accessibility to the internet has also helped people to get more accustomed to internet banking for account management.
A common trend of the usage of credit cards is prominent among the youth. However, most of them are unaware of the right ways to use it. This leads them to harsh credit-related burden and poor financial status. Here are some tips that one can follow to ensure a healthy usage of a credit card:
Ensure Balanced Shopping
One must ensure that all the purchases through a credit card must be affordable. While taking the card from the bank, one can know about the credit limit from the bank. It can be risky if someone shops up to the credit limit. There will be more chances of repayment failure in such cases. Thus, a credit card will instantly turn into a burden. The best way to buy things on credit is by remembering your affordability. You can keep it up to 25% of the limit amount.
Monthly Repayment of Balance
Monthly repayment of balance can ensure that you are using your credit card responsibly. Try not to fail the month balance repayments as it can elevate the debt and drain your credit score. Refrain from taking some recurring balance to the next month as it might increase your expense while the interest amount adds on. Moreover, balance payments within deadlines help you to improve the credit score.
You can even provide advance balance payments on having a stable monetary flow. This can elevate your credit score. A balance payment failure can be too risky for you, as you can instantly experience a trap of debt.
Use the Credit Card
A common scenario is observed among people that they rarely use the credit cards after taking them. This happens due to the fear of a debt trap. You must always use the credit card normally. Rear usage or not using a credit card can be bad as it can drain your money as the annual fee and bring down the credit score.
Use Credit Card for Fiancing
A wide range of premium credit cards offers you an opportunity for financing. Try paying the monthly EMIs on time to continue the good condition of your credit card. In case you face a problem, seek suggestions from the credit card experts of the bank that has issued the credit card by your name.
Hence, these are the leading tips that you can follow to use your credit card properly. Remember that a credit card teaches the user how to manage money. When you take a credit card, check if the rewards it offers are of your use. It boosts up your will to use the credit card regularly.
On taking the credit card for the first time, you can opt for buying some commodities of regular usage. It will both improve your credit score and provide you with a chance to clear the balances each month easily.
Created on Nov 19th 2019 00:59. Viewed 301 times.