Dos and Don'ts For Using Credit Cards

By Jeslyn Jessy

Nowadays, credit cards have become part of our life. In the point of view of most people, these cards are symbols of wealth. However, many of them do not actually know how to use their cards wisely. It is indeed important to learn the rules of the credit card game before you get burnt.

Below are some key guidelines which promote good spending habits to the credit card users. Let's see what are the dos and don'ts the holders must take note in order to avoid themselves from being trapped by deep debts.

• Control yourself from using the card frequently. You should maintain a good credit score with the bank or credit card companies. This can be done by staying within 30% of your credit limit given. Set a fixed amount and make sure you do not charge your expenses exceeding the amount.

• Only swap your card when you purchase things or pay for services that you really in need. You can use the card when it is really urgent or you do not want to bring so much of cash in hand for security purpose.

• Always make your card payment promptly once you receive the bank statement. Put a reminder so that you always keep in mind the due date of making payment. This is important to avoid yourself from incurring high interest rate

• NEVER consider a credit card as cash in hand. In fact, it is not! Don't use it to purchase luxurious products which you can't afford to pay in cash. Bear in mind NO CASH ADVANCE TRANSACTION should be made.

• NEVER make minimum payment each month after getting the statement. It is really a big mistake if you do that. The lesser you pay for your card, the more debt you accumulate every month. It also increases the amount of interest and financial charge you need to bear. What you should do is to pay as much outstanding as you can to clear the debt faster in order to save cost.

Credit cards are ideal for people who have "good credit" and have ability to pay back promptly. These cards are meant to provide convenience to you but not to become your burden in life.

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