Credit cards, everyone hates to get a credit card bill at the end of the month. Before I got a credit card for myself, I was someone who thought credit cards are evil, and you should never own or use a credit card. I was someone who always paid by cash or with my debit card.
But that all changed when I got my first credit card three years ago. Actually the credit card was forced on me by a salesperson so that I couldn't say no to. The card came with several perks, including no annual fee or joining fee.
After that, I hesitantly signed up for the credit card. And over the past three years, I got two more credit cards from two different banks.
With the credit card interest rates coming down even further, there is no better time to own a credit card and to learn how to make your credit card work for you instead of the other way around.
The one rule you must always remember when using a credit card is don’t spend more than what you earn.
Amazon and other online marketplaces now allows you to make a purchase with just a click of a button, without the need to remember your credit card details. So it’s easy to get carried away with a shopping spree, collecting credit card debt that you can’t pay at the end of the month.
So always keep in track of how much you are spending with your credit card, make sure your spending won’t go out of control.
Seize the offers
Banks giveaway credit card offers from time to time, this may include travel offers, easy payment schemes, and discounts for selected items.
Keeping the above rule in mind (spending no more than what you earn), you can find really good deals that you won’t be able to get unless you are using a credit card.
For example, I use my credit card to get travel offers, where I get the chance to spend on hotels that give 30–50% off when I pay using my credit card.
I purchased an iPhone that gave me a 10% off when I pay with my credit card, and on top of that, I was able to settle the bill with installment payments within 24 months with no added interest. Now tell me that’s not a good offer?
Why do banks give such lucrative credit card offers? That because these offers are only valid if you pay the installment or your credit card bill on time.
And banks expect that majority of people will not or are unable to pay their installments or credit card bills on time. Giving them a late payment fee and a good amount of interest.
So seize the offers, whether they are material goods, flyer miles, or vacation stays, but make sure to pay the bill on time.
Make sure to calculate everything
Before you make a purchase it’s always better to calculate how much interest and the total amount you will be spending at the end. Because even if it looks like a good offer, you might end up paying more than the initial value of the item unless it’s an offer that is interest-free.
So it’s a good habit to calculate the total amount and interest before you click the buy button.
Settle your credit card bill as early as possible
Don’t wait till the last moment to settle your credit card bill, this is something that has happened to me several times in the past.
When you wait to pay your credit card bill till the last moment, there is a high probability that you might forget the day, or you might have to attend something urgent and that will end up you have to pay a late payment fee.
So make sure you settle the bill as early as possible.
Enjoyed reading these tips? these are just some of the tips to help you use your credit cards to get the best use from them. Like and share this post if you enjoyed reading this.
