Credit Card Usage Tips
Credit Cards, these so-called plastic alternatives to the actual money has really got into our lives like anything. Now, almost anyone can have a credit card, right from school students to salaried persons or businessmen who carry this accessory in their wallet wherever they go. It has actually replaced the real money in many of our lives. Although these credit cards can come in handy during emergencies, they could turn out to be a huge burden if you did not know how to use it the proper way. In such cases you could end up with huge debt which would be very hard to get off with.
Credit Card Debt has been the buzzword off late. If ignored these credit card debt can in fact ruin your life like anything. Since the interest rates that you pay for credit cards are many times higher than the regular debt, if not paid in full, it could accumulate and could double or triple to that of your principal without you ever being knowing it.
If you are that sort of person who tend to pay only the minimum amount due on your credit card balance or pay only in parts rather than paying off the entire balance for the month, then you are actually inviting trouble to enter into your life the easy way. Since the interest rate calculated if paid only in parts is not only for the unpaid amount in your credit card balances but also for all the purchases you make on your card. This will continue till you pay off your entire balance for the particular month. This is how these credit card companies thrive on with charging huge interest on us, the customers who use their cards.
Also you should also try to avoid using your credit card for cash withdrawals no matter what the need is, until it is an unavoidable emergency situation. These cash withdrawals on your credit card will have interest charged on the day you withdraw rather than from the next credit card statement. You will also not have the interest free period for cash withdrawals. Instead you can apply for a loan from the credit card company which will attract far lesser interest rate than cash withdrawals.
Know what you spend and what you pay on your credit card, as sometimes there will be some unknown charges being levied onto you which can only be found if you look at your monthly statements you receive. Go through it in its entirety to look for hidden charges and request a reversal from the company which they will mostly oblige.
5 Quick Tips To Choosing The Right Credit Card with Rewards
I have always been a user of rewards-cased credit cards and have reaped much “rewards” by merely using the cards I have. There are two types of credit cards I use - one where I earn rewards points and the other, cash rebates. The former works by rewarding you with points which you can use in exchange for gifts, air-miles or off-set annual fees whilst the latter would allow you to deduct your expenses. In both ways, you can get carried away by using your card frequently and sometimes, without proper discipline resulting in mounting credit card debts. Afterall, banks would love it that you continue using their credit cards. If you can be disciplined enough to use your card prudently, then there are ways for you to enjoy the best benefits just by using credit cards. Here are 5 quick tips for you to choose the right Credit Deals with Rewards.
Shop and Compare
Don’t just settle for the first card you see. Do take time to shop and compare several cards before choosing the rewards credit card that is right for you. There is a mind-boggling number of credit cards available in the market. With ample research, you are likely to find one which is suitable for you.
APR
Never neglect the APR quoted for the credit cards. You would want to consider getting a lower fixed APR card compared to a card which offers other types of rewards if you are in the habit of not settling your outstanding amount in full or if you continue to roll over your balances from month to month.
Rewards
Okay, if you know that you are not too concerned with APRs since you dutifully pay your outstanding amount every month, then it is time to decide what kind of rewards suit you the most. Would cards which offer discounts on affiliate / member merchants attract you? What about those that allows you to earn one point per $1 spent and the points accumulated can be exchanged for a host of gifts listed in their catalogues? Perhaps you would be more interested in cash rebates cards since the gifts offered do not interest you. Choose wisely. Assuming you settle for the cards which allow you to earn rewards points, do find out how easy or difficult it is to redeem gifts and what type of gifts are offered and how many points are needed to achieve your targets.
Fine Prints
Always and I repeat - Always Read The Fine Prints. Never disregard the terms and conditions which come with the credit card agreement. Familiarise yourself with them as you need to know what your rights and obligations are where you use the credit card. Ignorance is not an excuse especially in a court of law.
Be a Troll
I don’t mean the ugly type. What I meant was troll on the internet for an insight into the different types of credit card offers, products and rewards offered. You are indeed lucky that with a couple of clicks on the mouse, instant information is available on your computer screen. Way back then, you would have no choice but to travel from banks to banks to find out what they offer and then, do your own checklist and comparison. Double check in several sources to ensure that the information given is accurate.