8 Credit Card Tips For First Time Users

Credit card is a payment card which is issued by a bank which allows user to make purchases on credit. It seems very exciting when it comes to purchasing things without having any money in your pocket. You need to remember that, the money you are spending is not yours and you will have to return it along with the interest.

Interest rate on credit card multiplies overtime, if you are lazy in paying bills of your credit cards. You will face more expenses than you have done and it will impact your financial life in a negative way. Nearly every credit card now-e-days comes with cool rewards on purchases which is exciting but at the same time it’s not.

In this article we have mentioned 8 Credit Card tips for a first-time user given below.

 

  • Money in credit card is not yours: You need to remember this every time when you are making a purchase through your credit card because it is the truth, the money you are spending is borrowed and you will have return it from your income in the future along with the interest, but debit card has no interest at all.
  • Don’t share your credit card information: Never ever disclose any information regarding your credit card on internet or over chat. In this way people can use your card information to buy things for themselves and later you will be paying for things you don’t even purchase.
  • Always make a budget: Making a budget is a good idea when you are buying items on credit because you will have to pay back more than you have spent. Budget will allow you to have a check and balance of how much you have spent and where you spend it, in this way you will be able to track and limit your credit expenses.
  • Return balance on monthly basis: Returning some money on monthly basis is a must to do thing because it will definitely save you form the huge burdens of interest which people face after a year or two. On credit cards interest builds from time to time and in the end. It will be far more than you have actually spent.
  • Avoid cash advances: You need to avoid cash advances at all costs because they come with much high interest rates. If you get some cash in advance you will have to pay more interest which is not good. The best practice can be using debit cards.
  • Spend less: You are always spending more when paying or purchasing through credit cards so always try to spend less from credit cards. In this way you will face lower interest at the end of month, when paying back and it will also help you to stick with the budget.
  • Don’t use credit card all the time: Always prefer to use cash for purchases because paying with credit card makes you pay interest for almost anything.
  • Save more: You need to save some money from your income in a savings account so, you can balance the interest you have paid on your credit cards. Savings will help you when you need money the most.

 

Conclusion:  Make saving money your habit because in harsh time your savings will be your best friend. Purchasing on credit is just like purchasing with loan money. So, always remember credit card can sort things in your life quickly but in long term it is not a good solution. Try using debit cards, because Advantages and disadvantages of debit cards are entirely different from credit card. If you still want to use credit card, you can do so with above mentioned first time using tips.

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