Owning credit cards has become a status symbol just because it's not available for every one. It's difficult to apply for one if you don't have a good credit standing and if you don't have enough savings from the issuing bank. Why I know it? It's because I've experienced it myself.
I'm bad in handling finances before. I don't control myself at times when shopping and I don't even pay all my monthly dues. Needless to say, using my credit card got me really broke and I suddenly decided to stop paying my card dues. Thinking I could just run easily yet things got worse. To finish my story - after a year of playing catch-me-if-you-can they finally got me to pay the whole amount at once. After all the harassment, the amount even doubled-up compared to my original dues a year before. This time I learned one of life's greatest lesson ~ Don't use your credit card if you don't have money to pay for your dues. It's the same as saying Don't buy anything if you don't have the money to pay for it.
Actually not owning a credit card can save you. I was credit card-free for like 10 years and survived it. But then I needed to get one since it benefits me now that I have a baby. So what are the things you should put into mind before using your credit card.
1. Use your Credit Card responsibly ~ make sure you put limitations on using it for purchases and payments. Not all things are best bought using your credit card.
2. Set a budget every month ~ Make sure to buy for things you can only pay for per billing cycle. Never over-spend just because you're using your credit card. Remember, anything that too much offers consequences.
3. Before opting for Installment Options make sure it's 0% interest ~ there are a lot of shops who offer this deal for purchasing with large amounts. It helps you pay your balance gradually at no extra cost.
4. Pay all your dues on time ~ just very recently, my main credit card is charging me P1,200 finance charge for not paying +P500 from my last month's due. I overlooked the total amount payables which made a big of a dismay on my part. Can you believe that? Don't worry I used my right to voice out my concerns on this.
5. Avoid on-line shopping as much as possible. Recently I didn't he'd my subscriptions to online
shops even if they just held out a Sale. Chances are, you buy things even those unnecessary by just browsing at the pages.
6. Take advantage of the rebates and rewarding deals of credit cards. Make sure you're enrolled on the right card that suits your lifestyle because you can earn more benefits from using it. Buying necessities such as food, medicine, milk or gas can provide you returns that's beneficial for you.
You might not know it but using your card on the most needed items only can be better for you. Sharing with you some of the things also to avoid using with your credit card and why.
1. On-line Sale Shopping spree ~ there's too much good stuff to buy online, and without thinking much - you might have added more than 5 Items you initially planned on buying.
2. Cash Advance ~ this is a great temptation to any credit card holder who needs cash quick. I got hooked here before but then realized I'm getting myself into serious debt.
3. Tuition Fees ~ schools offer low interest add-ons to Monthly or Quarterly schemes for paying all school fees. You can save more from here than trying to pay the fees with your card one-time. Them eventually having interests
4. Medical Bills ~ since its more likely you won't be able to pay the whole amount in a month, chances are interests rates will pile up too. Check Options offered by Health Care providers instead. They might even give 0% interest rates.
5. Gambling! ~ big "No-No" I don't think I should explain this further, right?!. Dona’s ever use it for gambling unless you triple your debt.
So now, there's so many reasons why you should take caution in using cards.
To cap it off, using credit cards takes a lot of self-discipline and control. One must manage to think that a credit card is like your wallet, every spend you do is part of a budget. The more you swipe the more things you need to pay. So be responsible and don't spend more than you earn. I just learned my lesson the hard way ;D
Happy Week Ahead. ----- xoxo Rycee