Good practice for credit card users

Having a credit card is a good thing and it will also increase our credit score making it a good thing to purchase additional properties or to make new investments in credit. When we take loans, credit score plays a very important role. We have to understand how credit card works and how strict we have to be with our spending before we start using credit cards.

Credit card is definitely a good thing but if we don't have a good spending practice or if we don't know how to use the credit card, then we might get into trouble. One of my office colleagues had to pay 20 times more than the value of their spending to compensate for the interest.

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Never spend more than what you can afford

When we do our spending, we have to also make some good planning on how we are going to be spending. We shouldn't be purchasing things if we don't have enough money to repay the bill when it is due. Every credit card holder would be getting a credit limit and the spending can only be inside the credit limit. The tricky thing is that we have to be sure that we can afford the credit limit. We shouldn't be utilizing the full credit limit just because it is available. We should be able to manage funds to pay the bill off when it is time.

Pay your bills before the due date

This is the most important thing. We have to have a good practice of paying the bills before the due date. We shouldn't delay paying the bills. The main reason is because for every day we delay, we end up paying some interest which can be an unnecessary burden. The interest rate is also a cumulative interest which can grow bigger over time. It is always good to have a practice to purchase things that we can afford and pay our bills before the due date.

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Always have equivalent money in the bank before spending

I cannot tell this to everyone. I personally do this where I always have decent funds as a backup in the bank account. Mostly the amount is equivalent to that of the credit limit and if I spend one something I make sure I always have the money in the bank account. My cousins and some of my friends fear they would miss paying back and that's why they don't prefer getting a credit card at all. But if we always have enough money in hand, we are safe, and if we know the credit card mechanics we are good to hold a credit card.

Don't get tempted by the offers

Most of the time mistake happens when people are tempted with offers. The sellers are also very clever and they attract people with some great offers. Even if we see some good offers, we have to make sure it is the right time for us not to get tempted and make a purchase. Sometimes different cards have different offers. I have a total of 4 credit cards. It definitely takes a lot of effort to stay in control and not get tempted by the offers.

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