4 Things to Remember While Opting For a Credit Card

In our move towards a cashless society, credit cards provide a degree of convenience that just cannot be matched by almost any other form of payment. With credit cards in our wallet, we do not have to worry about our security and safety while carrying around a large sum of money in cash.  Apart from allowing us easy access to financing and unmatched purchase offers, credit cards also enable us in documenting our daily expenses and can be an asset in reaching our savings goals. Intelligent use of credit card can make us earn extra reward points. In spite of all these benefits, injudicious use of credit cards has flip sides as well, which can land you in severe distress.Here are a few tips on how to use credit cards intelligently which can help you in effectively utilizing your credit card.1) The first thing you should do is select the right card to suit your requirements. The most important point you should consider while selecting a credit card is the interest rate. Choosing a card with high interest can be a huge burden. Moreover, remember that the one size fits all approach does not work for credit cards, a card with fuel benefits is best used for fuel, while one with air miles benefits is best if used for travel expenses like airline bookings.2) Before using your credit card in trivialities, do not overlook the fact that the money you are splurging through credit cards is primarily a short-term loan, which you have to pay back at a later date and it can have a very high rate of interest if not paid within the due date. Overspending through your card can land you in massive debt that can wreak havoc to your finances. Credit card debt can be responsible for low credit scores that hamper finances in the long run. Also, read the full agreement, and terms and conditions before applying for any credit card so that you are aware of the ins and outs of this debt.3) Timely repayment of credit card bills within the billing date can help you avoid getting into financial debt. Pay attention to your monthly statements, due dates, fees and interest rates to avoid any extra charges. Paying the minimum due amount will result in huge interest payouts, while not paying or settling your credit card dues leads to a severe adverse effect on your credit score. So play it smart and make sure you never miss your scheduled credit card payments. If for whatever reason you are unable to pay off your credit card dues within the stipulated time, try and get those converted to EMIs to save on the interest charges.4) Always keep a hawk’s eye on the usage of credit card to avoid being a victim of financial fraud. By paying extra attention you can avoid being a prey of credit card scammers. Also, avoid allowing others to use your credit card and never disclose the credit card PIN to others to avoid the possibility of fraudulent transactions.By adhering to these simple tips you can get the most out of your credit card, while ensuring that you avoid the key pitfalls associated with its use. I am puneet sharma from amritsar .I have done my graduation from GNDU. (show bio)

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