6 Tips on How to Handle Your Credit Card Wisely
In country such as ours, Credit card is a symbol of being effluent thus carry a snob appeal. Even those who can live without it are bend head over heals to acquire one without realizing whether they have a real requirement for it, like travel, entertaining guests; official or otherwise. While acquiring a credit card they do not consider how will they be settling the monthly bills. There are hundreds of people who enjoy their credit card and flash it all around when out on a shopping spree and dining out. While there are as many people cursing the day when they got their credit card. So, the question is why there are people enjoying such a great facility while for others credit card is a curse?
Since immediate cash is not needed to make a purchase, impulsiveness takes over and a card holder spends the money without grasping what is heading his way. In cases of such card holders the easiest way out is pay the minimum amount in anticipation that they will settle the bill in the near future after they have saved some money out of monthly expenses. This is no less then a quick sand from which escape is not easy.
To avoid such a severe situation following are 6 tips on how to handle your credit card wisely.
- Identify Need: Before applying for a credit card identify your need. It is not necessary to have list of cards, having one credit card is good enough, for example if you already have a Silk Bank credit card there is no reason to have many more. Spend wisely on Silk Bank credit card and make your life easy
- Plan Spending: Do not spend impulsively, plan your budget and stick to it. Remember, this is your “loan” and this has to be paid at the end of the month. Be watchful and only spend what you can pay back and your income affords
- Pay in Full: Make it compulsory on yourself to pay in full. The interest rates on revolving credit on credit card is far higher than any other kind of personal loan. You must bear in mind that these financial charges keep adding up to a point where they are unmanageable. Keeping a track on spending on a list of credit cards you may have, is even more difficult. It is therefore advised to carry one card, let say Silk Bank Credit Card and build a good credit history. Make your credit card a convenient way to pay, rather then make a habit of buying or paying on credit
- Remember Payment Dates: Many credit card holders who may not even have a cash crunch forget to pay on time because of their busy schedules. This situation is a recipe of disaster if a person has a long list of credit cards. Though banks send out bills every month as a reminder but a person should keep a personal record of dates when the payment is due.
- Examine Statement: Credit card holder must examine the statement as soon as it is received. This will help in confirming all purchases made during the course but will make the credit card holder realize his spending habits and what was bought unnecessary and perhaps could have been avoided. Additionally, several charges bank levy can also be reviewed.
Rewards & Benefits: Banks from time to time offer various schemes to benefit card holders. Silk Bank credit cards are known to offer many reward and benefits on purchases. Be watchful of such reward and cash back benefits. Make full use of such offers any purchase of consumer durable, dining out should be done when such offer is available
The net take away of above points can be summarized, as Credit Cards are more convenient and mode of payment and not an extension of your wallet. There is no need to carry a list of credit cards, just one good credit card with a sound credit history such as Silk Bank Credit Card is enough to fulfill your needs.