Tips for Using Credit Cards
With so many banks, financial institution throwing credit cards at us, how should we deal with it? If you don’t already know, the word is credit. It means you have to pay back what you spend.
Tip 1. Clear your outstanding every month. If not, you become the bank’s cash cow. Every month, they milk you for 1.5% interest or 18% compounded. Ask yourself this, “Is it easy to get an investment that pays you 18% per annum?†No, right. That’s what the bank does when you don’t clear your outstanding amount.
Tip 2. Don’t have too many credit cards. 2 cards will be good enough for most people. A maximum of 3 credit cards is sufficient. Why? To me, filing the monthly credit card statements is a chore and a waste of time. I’d rather spend my time on other things. On busy months, you may forget to make the payments on time.
Tip 3. Don’t get tricked into using your credit card to earn reward points. Let’s face it. Some of us are disciplined and can control our spending. If you cannot, many credit card companies use this to lure you into charging for big-ticket items. The next thing you know, you start repaying only the minimum, and start accumulating debts.
Tip 4. Use your credit cards wisely, don’t charge what you can’t pay in cash now and you’ll be okay.
Bestcredit : How to Win the Credit Game
0 comments
You get to right to be heard first! Fill out the form below.
Leave a Comment