Credit cards are essential, but they are also double-edged sword as they can help you get financing instantly, but also lose you much money if you’re not too careful. Owning a credit card means taking responsibility to ensure financial stability with your privileges. Here are a few things to know about credit cards.
1. Pay Your Bills Punctually
The secret to owning a credit card and being successful with any kind of financing that you might have is by paying your bills on time. Nothing says you’re a faithful and responsible customer by paying your bills on time. Ensure that you manage your finances carefully.
2. Pay In Full
You can virtually have your card for free by paying in full the entire amount of spending you have each month. If you’re to use your card, ensure that you spend what you could pay for in the following month. You can use it for your daily needs or for financing appliances.
3. Keep a Notebook
For every purchase you make with your card, write them in a notebook. Write your card’s credit limit and interest rate. In case you made a purchase from the previous month but couldn’t pay in full, you could calculate your interest rate. By keeping a notebook, you avoid the problem of having to find out you’ve used up your entire card by hitting the credit limit.
4. Insurance
If you deserve an insurance policy as stated by your creditor, ensure that you can make use of the insurance. Read through its policies. A great number of credit card owners in the United Kingdom have lost money because of PPI and are now making payment protection compensation claims to get back their repayments. You don’t want this to happen to you.
5. Settle Your Debts
Ensure that you settle your debts in the next month or just allow yourself a month of debt. You understand that the credit card interest can hurt your budget. Also, try to ask your lender if your card has insurance repayments along with your monthlies. This is because you might need to look at the policies to ensure that you are not mis sold PPI, MPI or other types of payment protection products.
