A basic Do’s & Don’ts guide to credit cards


Credit cards can be a blessing or a curse depending on how they are used. For many individuals, credit cards are an essential financial tool. And yet, this useful financial instrument is anathema to many borrowers. A blind refusal to credit can, however, affect your long term wealth. If used properly, credit cards can dramatically help you to improve your financial life. For instance, if you have a high credit score, you have to pay less when it comes to borrowing money for a car or a house. By using a credit card, you can avail exciting rewards like cash back rebates and discounts. As a borrower, you reap benefits like extended warranties and price protection. So, let’s delve into some dos and don’ts of using credit cards to ensure that you are taking full advantage of them.


Ensure that you have selected the right one

There exists a myriad of options when it comes to opting for credit cards. So while choosing a card, you have to think about the long term advantages as well as disadvantages associated with it. A conventional card will allow you to spend a little beyond your means. On the other hand, if your credit rating is terrible, you might want to consider a specialized credit building card. Check out SC credit cards and be rest assured about long term benefits.

Ensure to fix an appropriate due date and stick to it

Usually, you want your monthly due date to a to be a few days after your payday. This helps you to pay whatever you owe as you would have enough money in your account.

Take advantage of the schemes

If you have a good credit rating and pay your monthly dues on time, then you can take advantage of the reward schemes. Various popular rewards-based cards will provide you with redeemable points.

Pay off as much as you can each month

If you want to avoid credit card debt, then the best thing to do is to pay off your dues each month. Always be on the lookout to prioritize credit card payments over certain household expenses.


Avoid any type of cash advances

It is quite reasonable for you to use your credit card to make cash withdrawals from ATMs. But if you do so, you would be at risk to incur hefty charges. It is best to avoid withdrawing money from ATMs with the help of credit cards. You are likely to pay less only by going into your overdraft on your current account.

Refrain from giving your credit card details to any third parties

While it may seem reasonable, you should always emphasize on security while using a credit card. Fraud related to credit cards is a big issue in many countries. Hence, you should make every effort to keep your credit card details safe and secure.

Avoid spending more than you can afford to pay back

The main idea of a credit card is to enhance your financial flexibility and allow you to make certain payments which would otherwise be difficult to make. Spending far beyond your means can jeopardize your situation, which can be quite detrimental. In the case of credit cards, always ensure that you are balancing what you are borrowing. It is still a good idea to use credit cards as helping hand rather than treating it as free money.

Credit cards these days are a necessity. You can use them in an array of transactions. Always prefer to travel with your credit cards because if your debit card gets stolen, then your full savings account may at risk.

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