A credit card can be a helpful financial product. It is a way to quickly get additional funds when our wallet is empty. It can also be our lifebuoy in emergency situations, e.g. when the equipment breaks down and we are forced to quickly buy a new one or simply as an extragotówka for the dream expenses. What rules should be followed? What not to do with your credit card?
Don’t get used to it
It is worth remembering that this piece of plastic is not a voucher or gift card. When paying by credit card, we make a commitment that we will have to pay back within the prescribed period. Therefore, be careful, do not use it at every turn, in every store or salon encountered, acting on impulse and buying unnecessary goods.
Shopping with the awareness that we have nothing on our account, and yet we can pay for it, may for some be the beginning of uncontrolled debt. Warning! Using a loan is addictive – so think about it before you start, or do you know how to use it. If we use all the advantages of these cards and avoid disadvantages, then their use will be really profitable and pleasant. It is different in the case of an unaware holder.
Do not ignore current statements
Carefully read the monthly card statements. Check if everything is okay or see additional fees and transactions that you have nothing to do with. Given the current cyber criminals’ attacks: phishing or skimming, we’re at risk.
If something seems suspicious to you, don’t hesitate, just call your bank’s hotline. Ignoring statements and lacking in-depth analysis can expose you to financial losses. So take a few minutes to thoroughly review the history of your operations.
Don’t make a backlog
Sclerosis, distraction, accident or just a lack of funds required. There can be many reasons for defaulting on time. However, if we do it with full awareness and using colloquial language – we ignore the matter – it may not end well for us. If you have financial problems, don’t panic, don’t run and don’t be shy to talk to the bank about it! This one will probably offer you several solutions.
As a rule, the customer has several options to choose from: repayment of the entire debt in the interest-free period, repayment of the minimum amount or spread of the debt on account of transactions made in installments. Late repayments will be rewarded with additional payments and interest. Keep an eye on your deadlines and pay off your debt in full!
Do not withdraw cash!
The credit card is primarily used for making cashless transactions. It is created for making payments in both stationary and online stores. However, do not be afraid to withdraw cash from ATMs. This is quite costly for two reasons, firstly, a commission is collected for cash withdrawals from an ATM (at Good Finance and Good Credit it is 4% min. USD 10, and in E-money – 6%, min. USD 10).
Secondly, in 99% of cases, interest is accrued on such payment immediately and there is no interest-free period! What’s the conclusion? When taking cash to an ATM, take your debit card with you, and take the loan to the shopping mall.
The key to success is choosing the right offer. A comparison of several products from different banks will definitely work out for us (credit card comparison). Note the interest rate, which may not exceed four times the interest rate (currently it is 10%). Due to the fact that it is similar in different banks, it is worth looking at other elements. We notice big differences in fees charged for issuing and handling the card. By analyzing the offers of banks well, we can avoid these costs. Also, note the insurance attached to the card.
If you do not intend to use it, give it up – then you will get rid of the additional monthly fee. An additional several dozen dollars a year is the cost of the renewal fee. Typically, the bank will require you to meet certain conditions to exempt you from paying it, such as completing a certain number of transactions. It is worth getting acquainted with all the requirements and choosing the most suitable card for us.
Do not sign the contract without reading it!
Hooks, stars, small print – there are many ways to catch a customer! Therefore, it is necessary to read the contract carefully. You will find in it records regarding, among others interest-free period (which usually ranges from 50 to 60 or 61 days), minimum repayment or the possibility of spreading transactions made with the card into lower-interest installments.
By reading the entries from A to Z, you will be sure that nothing will surprise you and you have not let yourself be done in a balloon. Carefully read the Tariff of Fees and Commissions, which lists all fees related to the issue and use of the card and the interest rate table.
A loan can be a great means of payment, provided that we use it wisely. By following the basic principles, you can easily pay for purchases and services and not worry about increasing debt.