When we are young, whether still in college or just into the work force, getting a credit card seems like a big step into adulthood. However, using a credit card is not just a matter of swiping it at the point of purchase.
Below I outline a few steps that would help us use our credit card more responsibly and manage our finances better.
1. Only apply for the number of cards that we need. Two is still fine but more than that is excessive. We may find a credit card terms too good to turn down but look on the long term. Does it save you money in the long run?
2. Pay off your credit card balance on time in full. This way, you will never have to pay more than the amount you paid for your purchases in bank charges and interests.
3. Keep in mind when your bill is due. If you didn't receive it in the mail, find out from the bank so that you can pay your balance on time. The onus is on the credit card holder to make sure it is paid, not on the bank or the mail delivery service.
4. Don't use cash advance. This is very tempting for people who think that here's some money they can use if they need it but then interest is charge the moment money is drawn from the machine. Granted, interest charged may not be as high as loan sharks but it all adds up.
5. if you have a credit card, a lot of telemarketing companies will be calling you up with lots of offers for products and services and all you need to do is say you want it, hand over your credit card number and you will be charged monthly. Be firm to decline these if they are not what you need.
Having said these, these are only a handful of steps to take. Credit cards are not all evil as there are many opportunities for us to save money too but from what I see, there are more people misusing and abusing it than using it to their advantage.
Below I outline a few steps that would help us use our credit card more responsibly and manage our finances better.
1. Only apply for the number of cards that we need. Two is still fine but more than that is excessive. We may find a credit card terms too good to turn down but look on the long term. Does it save you money in the long run?
2. Pay off your credit card balance on time in full. This way, you will never have to pay more than the amount you paid for your purchases in bank charges and interests.
3. Keep in mind when your bill is due. If you didn't receive it in the mail, find out from the bank so that you can pay your balance on time. The onus is on the credit card holder to make sure it is paid, not on the bank or the mail delivery service.
4. Don't use cash advance. This is very tempting for people who think that here's some money they can use if they need it but then interest is charge the moment money is drawn from the machine. Granted, interest charged may not be as high as loan sharks but it all adds up.
5. if you have a credit card, a lot of telemarketing companies will be calling you up with lots of offers for products and services and all you need to do is say you want it, hand over your credit card number and you will be charged monthly. Be firm to decline these if they are not what you need.
Having said these, these are only a handful of steps to take. Credit cards are not all evil as there are many opportunities for us to save money too but from what I see, there are more people misusing and abusing it than using it to their advantage.
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