A credit card is a must to have nowadays. It will help you to your budget if you use it wisely but it will also be the reason for you to be in deep trouble. It will let you end up broke for spending too much.
It is really easy for you to buy something you like by just swiping your credit card. Buying and booking online is easy too using your credit card. Let us borrow the tagline of Superman “A great power comes with great responsibility “. We need to be responsible enough in using our credit card for us to be able to use it continuously.
I always use my credit card in buying groceries, when I received my salary I will set aside the amount I already spent in buying groceries thru credit card so that once my due date comes I already have the amount to pay my due. Using credit card help me to buy the things we need especially if I don’t have cash and payday is not yet to come.
Your credit card cut off period is very important. Let say your cut off period is every 16th day of the month, spend the amount that you can pay until this date. And if you need or want something you buy but you cannot afford to pay it for your current billing buy it after the 16th day so that it will be posted to your next billing.
Upon application, there is a part of the application that the bank asks you to apply your account online. Do so, for you to be able to monitor the flow of your account. You can see the available balance and the amount you spend and where did you spend it online. You will also notify about your due date in the email. Check your account online every once a month, by doing so, you will always know what you will be going to do, to swipe or not to swipe your card anymore, or do you still have available balance and how much do you need to pay for the month.
There is also part of the application if you want to apply auto debit. It is ok to apply auto debit so that you will not going to miss your due date and not going to incur a penalty. Pay your due in full amount always and not just a minimum amount due. Paying the minimum amount due will make you pay additional interest and fees. If you cannot pay the full amount, pay the highest amount that you can afford and call your bank to negotiate for a small interest and fees. And If you have already your card and you did not do the above instruction, you may contact your bank and ask for the changes and update for your account.
Use your rewards points wisely. You can pay your annual fee using your rewards points but check other deals they offered that will benefits you more than by just paying your annual fee. Choose the credit card that offered “no annual fee for life”. There is some bank offered this kind of services.
Spending, buying something you want and give yourself a little pleasure is not bad as long as you know your limit and you know how to be a responsible credit card holder.