Gone are the days, when wearing fancy clothes and accessories were enough to make a fashion statement. Today, it is this plastic card that makes all the difference. In order to rightly fit among your friends and colleagues and appear to be a cool person in your social circle acquiring a credit card has become a must. However, you need to be very careful while using a credit card in order to avoid piling up debt. Let us now have a look at some of the ways that you can pursue in order to make absolute use of your credit card.
Focus mainly on Cash Purchases
Many a times, we have enough cash lying in our wallets, which is generally more than sufficient for going ahead with the purchases at hand. However, instead of making a cash purchase right there and then, we choose to part with our credit card for buying something as basic as grocery items. What we fail to realize here, is that, we are not being very responsible as far as managing credit is concerned. Yet another shortcoming that creeps in, is that we end up buying even those items, which are not required by us immediately, just because we don’t have to make a cash payment and have a credit card at our rescue.
Make Timely Credit Card Bill Payments
If you happen to be an intensive credit card user, it is definite that you might be attracting heavy bills at the end of every month. In the process of enthusiasm, you must have made blind use of your credit card, but your financial ability is put to real stake when the bill arrives. The first thing that you need to lay heavy consideration on, is to go and make your credit card bill payment on or before the prescribed due date. If you fail to make a timely payment, you are sure to attract a hefty penalty on the bill amount, which keeps exceeding with every passing day and may go beyond the reach if you keep ignoring. Also, your credit score gets a pack of punch, gifting you a reputation of a bad borrower.
Avoid Acquiring Multiple Credit Cards
It would always be in your best interest to keep only one credit card with you. Multiple Credit Cards lead to piling of debt from all angles. Moreover, at the end of the month you are required to pay off multiple credit card bills, which is likely to affect your financial standing in a major way. Apart from this, cash is likely to become a forgotten memory, if you tend to own n number of credit cards.
Eliminate Exhausting Your Entire Credit Limit
Credit Card Holders are allowed a certain pre-decided limit on the sort of card owned by them. In the process of buying items, which are otherwise unaffordable for them, they end up using the entire credit limit sanctioned. If you wish to play safe, then you need to make it a point to only use around thirty percent of your credit limit. Similarly, you need to overlook the minimum balance option to waive interest rates that can prick you in the near future.
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