Better to Pay by Credit Cards
Today, in this modern world cash has become the thing of past. Now people are provided with the ease of credit cards. Their money is only on the distance of just one swap. Instead of taking the weight of cash now people mostly use credit cards from paying the amount of stationary to paying the bills in shopping mall.
The have provided a lot of comfort because minimum payment can also be done through it. In this article, information about using credit cards, advantages and disadvantages, credit card tips are discussed briefly.
The advantages of debit cards are more than credit card as Credit card is just like a loan which is borrowed from card lenders instead of charging from the actual account. Credit card has a line of credit on it. On this credit line all the information of the account is encrypted.
To pay the amount of any bill or to do any transaction some information is required which is used for verification for the completion of action. To make the action efficient credit card tips should be better to follow.
Where to Use:
As you have no worry to carry cash because the advancement of using credit card technology is now everywhere.
Whether you have to pay any shopping bill restaurants bills, electricity bills, home maintenance bills, or want to purchase any stationary, grocery, all can be done just by the little card you own that is not far bigger than the palm of your hand.
Daily Life Credit Card tips
Here, easy-to-follow credit card tips for smart users or for beginners to help in decision making.
- Regulating Credit History:
The strategy that can be used in building credit history is to make small purchases regularly and then paying them off. This will show the providers of credit cards that the user has maintained his good credit history regularly.
- Maximum payments, savage from interest:
One defect of using credit card is that if you will not pay the balance you will be charged by interest. This amount may differ according to your credit score. So, make the maximum payments paid so that your credit history remains good.
- Avoid using multiple Credit card at once:
Using multiple credit cards may decrease your reputation in front of lenders and it will also become difficult to monitor multiple credit accounts. Usage of multiple credit cards may affect your credit score which will have a bad impact on your credit history.
- Be alert of penalty charges:
Policy of credit card is little bit alerting if unluckily you missed any payment or crossed deadline then you will have to face the penalty charges. Another thing to keep in mind is that you should not exceed your credit card limits because exceeding the limits are also charged by penalty. It’s not severe but puts a mark on your credit file.
- Avoid withdrawal of cash:
Although cash is withdrawn through credit cards but it’s not considered as a good habit because in this case you have to pay fee with high rate of interest. So, it’s a good thing to avoid withdraw to save yourself from extra payment.
- Protection of Card from fraud:
Now-a-days a lot of people prefer credit card to cash because they feel more secure.
For instance, card is stolen or lost, you can simply report the incident to the bank and cancel the card.
- Set up Mobile Alerts:
Some people can’t check their credit card account regularly, now they can automate the fraud detection process. Many card issuers now let the customer set up mobile alerts that will notify them on time. These are:
- When they are reaching their credit limits.
- Notify, if the card company detects unusual activity, like transaction in unfamiliar location or doesn’t fit in usual pattern.
- Use a Reward Card:
Typically, you should use credit card with better reward options. Banks offer various reward programs that include cash back your purchases; giving you opportunity for fly free, dine at hotel and many other only if you are using credit card for every purchase.
Credit cards can be a favorable way to manage finances, but they can be risky for some reasons. Such as credit card frauds as it is discussed above in credit card tips. Credit card are suited to certain types of people but not for every person. A credit card may suit you if you’re at least 18 years old, have a regular source of income, are keen to earn rewards for your spending.
As well as, it may not suit you if you can’t afford annual fees or interest charges, are happy to just use debit cards, or don’t meet the residency requirements. Since, cards are easy to use but they also make it easy to over spend and credit card changing our life. Its up to a person who own a credit card that how he managed his or her finances and how he efficiently uses a credit card with provided credit card tips.