Do's & Don'ts Tips : Credit Card
Credit cards provide the ease of your financial transactions, but behind all that ease, there is a huge responsibility in their use. The responsibility in question is where your credit card can spend more than your ability, you are responsible for overseeing its use according to your financial ability. My finances will spell out some dos and don'ts of correct credit card usage.
# 1 Do: Keep an eye on It
As a wise credit card user, you certainly do not want to spend more than your ability. Watch out for your credit card utilization to avoid stuck credit card bills. In addition, you should limit your use of credit cards not to exceed 30% of your limit. This will help you build a good credit score.
# 2 Do: Think Before Making Transactions
To avoid overtime paying for credit card bills, think carefully before making a transaction. Consider again whether it is a necessity or a desire? Often what you want is not something you need you know.
# 3 Do: Check with Credit Card Billing
One that needs to be done every credit card bill is not regretting it, but reviewing and checking it again. Match the date of purchase and nominal with the receipt of payment, is it true and appropriate? This will anticipate the loss due to a wrong payment or a payment that you don't even buy (unauthorized purchase).
# 4 Do: Negotiate Annual Fee Payments
Generally, the bank gives free annual fee promos for the first year or lower annual fee. Before applying for a credit card, make sure you have negotiated first because even if it is only a small possibility, the bank may provide an additional promo that will benefit you.
# 5 Do: Choose Credit Card That Meets Your Needs
Credit card features are now more varied and you certainly do not want to pay for features you do not use. Therefore, before applying for a credit card, it helps you to compare several options in advance including the various features it offers.
# 6 Do: Take advantage of Credit Card Rewards Offered
Some credit cards offer promos or rewards that benefit customers. Among other reward points can be redeemed for cashback, shopping vouchers, or discounts for subsequent purchases.
# 7 Do: Check your Credit History
Credit scores will affect your future transaction needs, such as if you want to apply for mortgages or motor vehicles. Thus, it is important to check your credit history each year and improve it so that your credit score gets better.
# 8 Do not: Overdue Pay
# 9 Do not: Pay Minimal
Pay always on the bill if possible. The balance of unpaid bills will incur considerable interest and will accumulate in the months to come.
# 10 Do not: Exceed Your Credit Card Limit
If you make a transaction beyond your credit card limit, then the amount that is beyond the limit will be charged. In addition, this will drop your credit score.
# 11 Do not: Use Credit Cards for Everyday Needs
Avoid using credit cards to buy food, clothes, and daily necessities that you can actually pay in cash. This is dangerous because it can accumulate bills quickly without you even knowing it.
# 12 Do not: Own Multiple Credit Cards At Once (Credit Card Collection)
If you have too many credit cards, you will likely forget to pay or have trouble organizing the payment. It would not hurt to cover some credit cards to avoid the annual fees and cluttered bills.
# 13 Do not: Use Credit Card Abroad (No Credit Card Check)
Except in circumstances that force, avoid the use of credit cards abroad. Why is that? The exchange rate used in credit cards is generally quite high and will result in very high bills. You should make sure the exchange rate first before using it.
Use Credit Card Correctly
Credit cards can be useful and harmless if you use them properly. But credit cards can also be a source of financial calamity when used carelessly. Enjoy the benefits of credit cards without forgetting some of your responsibilities.
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