How to benefit from using your credit card
Almost all of us use a credit card today; it is certainly a very convenient means to avail of credit by just carrying around a small piece of plastic! Due to its popularity, credit cards are growing into a necessity and it is almost impossible to lead our lives without one .Can you imagine having to take a vacation with a wallet full of cash? It can be concluded that credit cards have permeated into all levels of our livelihood today. Yet all is not rosy about this facility, credit card over dues do contribute the maximum to debt problems of an individual. All this being said; is it really easy to maintain a credit card? Why do most of us have staggering dues on our cards? Is it not possible to integrate cards into our lives amicably? Debt management on a credit card can be pretty simple, in fact you can further proceed to even use credit card to your advantage! Read through the following points carefully to get a fair idea of how to arrive at such an ideal scenario-
First and foremost be “aware� of what you spend on your credit card .Estimate the expenses beforehand and the likely amount due at the end of the month even before you receive your statement .Credit card is a risk free replacement to carrying cash, your purchasing power does not increase by merely possessing one .You still have to clear your dues month after month.
Avoid credit cards with annual fees and high interest rates.
Ensure that the credit card you have does not have an annual fee .Most cards with annual membership fees offer a lot of fancy benefits with it thus tempting you to subscribe to one. Mostly they wind up being the expensive to maintain.
Consolidate all expenses on to your credit card.
This may sound a little adverse but ensure that even the tiniest of expenses go on to your credit card so that it is easy to track and maintain accounts of them .However this does not mean you carry both cash and credit card and wind up exhausting your income as fast as it came in!
Be vigilant.
Keep looking for promotional offers given to card holders. If you use your card well and as well as systematically clear payments without penalty interest, there is a good chance that your credit card company decides to give you a bonus or an additional card with increased credit limit. Whether they do or not, there is
no harm in checking them out.
Always clear the minimum balance due first.
Even on those months when you are on a shoe string budget, ensure that the minimum due on your card is cleared first. Always remember to stay afloat on the payments due, try to even maintain a no due status on credit cards.
Learn to negotiate on balance transfers and reward points.
If there is a chance to shift a large balance from a credit card to an entirely new one with zero introductory charges, jump at the offer. It is a an easy option to avoid paying large amounts of interest .Always try and reclaim reward points you earn against clearing dues and negotiate for the best deal at that . Remember that you are the master of your finances, exercise strict control on your credit card usage and never succumb to the lure of unnecessary purchases. All that it takes is some amount of self restraint and a lot of planning ahead!