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Credit cards are being offered by almost all the banks and they encourage the users to spend money through these cards. Most people do not understand the potential benefits of using these cards in the right way. Not having a clear understanding makes them to end up in accumulating debts. It is very important to use the card up to the limit which you can repay back.
1. Credit card companies offer a lot of discounts and cash back offers for the purchases.
2. These cards help to regulate the cash flow in case of emergency requirements.
3. These cards are very handy in making online payments, store outlets and even in petrol bunks.
4. Individuals need not carry cash all the way they go.
5. Lump sum purchases can be converted to easy EMI options at zero interest rates.
6. Prompt payments of cards will help the individuals to build a good credit history report.
7. Even a reward points credit card can be handy as you can use the reward points to purchase items or pay bills.
8. Individuals can set up ECS or standing instructions in their credit card to pay loans or bills.
What To Do With Your Cards?
1. It is highly recommended to pay the outstanding amount within the billing cycle.
2. If you think you will not be able to pay the outstanding completely, you always have the option to convert the purchase to EMI at your convenient duration at zero interest or lesser interest rates.
3. Check for the credit card statements every month and make sure you have been billed for the purchases you have made.
4. Make sure to check you have got back the cash back or reward points that were promised during the purchases.
5. Use your credit card at outlets or for online purchases if you are entitled for better reward programs.
What Not To Do With Your Cards?
Even though the cards come with a lot of advantages, there are certain things which you should never do with them.
1. Do not use the credit card up to its full limit even though you are entitled to use it fully.
2. Do not make purchases which you cannot repay with your salary.
3. Do not stop with the payment of minimum due amount. This alone is not enough.
4. Do not make fresh purchases without clearing the previous month outstanding because you will attract interest charges on every fresh purchases from the date of purchase if you fail to clear the previous outstanding completely.
5. Make sure to pay the minimum amount due on the prompt days to avoid any late charge fee which would be very high.
I hope this article would throw much required light about the usage of your cards. A complete understanding of the plastic card is always required which will help you to use it diligently. It will be a boon to use it with financial discipline and good knowledge about the cards.