‘Credit card’ as its name shows it is a card in which you can save your credit. It includes the owner’s bio-data name, account number etc. A lot of peoples are looking for the credit card, it is a big step. It’s important to understand that a credit card balance is borrowed by credit card’s issuer. It’s not your own money, you have to repay this. According to Business Articles, if you are thinking that a credit card is a good tool for your finance, then you are right but sometimes you have to be careful. If you are going to buy a credit card, it’s very easy to fall into a debt trap.
Are you going to use your first credit card? Here are some credit card tips for first time user:
Create Budget: It is a most important tip for the person who is going to apply the first time for a credit card. Create a plane in which you have to focus on spending money, budget, and stick with it. Your credit card should be part of this plane. If you will be stick with your plane, you will never find you in a debt trap. Do not use the credit card if you do not afford it in your budget.
Pay Off The Balance: If you will use the credit card in your budget limit then it is not a big deal to pay off the balance each month. You have to pay your balance every month. If you don’t want to pay high interest. Carrying balance results interest. Always pay off on time and make sure that you have to repay what you borrowed from the credit card.
Don’t be too much excited on a limit increase: When credit card limit increases mostly the first-time user feel the excitements. The increased limit of credit card is $500 to $900. After some months if you are behaving responsibly with the issuer, you might get a high limit of the credit card. Sometimes in excitement new users forget that the money is not theirs, they borrow that money. At the time of pay they shocked, and then they pay high interest. If there is a benefit of increasing limit, there is also fear of overspending.
Avoid Cash Advances: If you are getting advance the interest rate will high. If you are getting advance at an ATM, you have to pay fees for it; as well you may be pay fee for advance cash. So be careful at the time of advance. A cash advance can be a very expansive choice for you.
Pay Bills On Time: one of the most important tip to pay your bill on time. If you don’t pay bills on time it will be affected by your payment history. Your payment history is directly linked with your credit score.
Give Attention To Your Credit Card Issuer’s Emails & SMS: if you have a credit card than it’s your responsibility to be aware of its terms and conditions. You give attention to the material which card issuer sends you, don’t ignore it. Sometimes issuer informs you about your credit card’s new agreements, terms, and conditions and about fees. If you want to be aware of your credit card then pay attention to the issuer.
Don’t Share Your Credit Card’s Information: Always keep in your minds that don’t share your credit card’s information to others. Keep it private. Don’t tell anyone about your account number or other information. Only give information to those who are actually connected with you for such purpose. Before using online a card on a site make sure that, is that site secure than using your credit card.