Nowadays, no denial, but meeting personal expenses is becoming a challenge. Be it a five figure salary earner or six, impacts of inflation can be seen on everyone’s life.
I know many people, who work extra hours and run another source of income on a parallel basis. But, not everyone is capable of doing so. For those, a credit card is a viable option. This financial aid, sometimes becomes a reason behind a person’s financial crises. However, keeping a few tips in mind, you can have best out of these plastic cards. Here are those tips on using your credit card wisely.
Pay Your Balance
The first rule to follow when using a credit card is to spend according to your requirements and income sources. Never ever swipe a card for an amount that you face trouble settling later.
As and when you have cash, consider paying your balance fully at or before the maturity. This way, you will be able to avoid paying interest that adds to expenses and reduces your purchasing power.
Choose the rewards smartly
Most credit cards offer rewards when you incur expenses, and this type of program can save you a lot of money. Taking into account your lifestyle and your consumption habits, determine which card is best for you.
For example, if a credit allows you earn 2% cash rebates on purchases made in two categories of your choice such as movies and grocery or 1% On all other purchases; go for the card that can save you on all.
There is no use of going for a card that offers you miles if you are not a traveler. You won’t be able to redeem your points. Watch out for the point system and their redemption procedures.
Save when you spend
Once you have a credit card that offers you reward for your purchases; use those reward points to pay your balance. This is a great way to ensure that the rewards are really beneficial to you. Most cards encourage you to buy more from those rewards points. Trust me; that is a trap to keep you in the loop for a longer duration.
Check Your Expenses
Do not spend foolishly. Nowadays, every credit card comes with an online account statement access. Do keep a close eye on every spend of yours. You should watch exactly how you spend because that is how you are going to have control on your spending and expenses. By consulting your account often, you can learn to respect your budget and you will be able to use your credit card intelligently.
Control your card
In general, bank guys try their level best to offer you a big limit. There is no fun in having a limit that you find hard to fix a later stage. Keep your credit limit way below your income level; at a level, you think is reasonable and you know how to manage it.
Credit cards are not a problem if used wisely. By following the above-mentioned tips on using your credit card wisely, you can simply save yourself from a lot of trouble.