Credit Card: As a one-way ticket to debt, credit cards have frequently been mocked. This is quite harsh, though, as incurring debt is frequently a result of excessive expenditure that you consciously choose to do. In this article, we will give you 5 points that you must keep in mind if you use a credit card.
5 important tips to keep in mind if you use a credit card
1. Avoid exceeding the limit
Credit card usage is restricted. Try to avoid using it to its maximum capacity. It can hurt your credit profile if you go over the limit. You can end up on the bank’s credit-hungry list.
2. Do not ever share your card details
Keep your credit card information private. Never give out any information to anyone over the phone in this circumstance as businesses do not often request this kind of information. You should assume that someone is trying to con you if they want unreasonable details.
3. Pay the minimum balance
The credit card bill includes the minimum balance information. Make the minimum payment if you are unable to pay the entire amount for any reason. If you don’t, the bank will penalise you, which will lower your credit score.
4. Do not get your limit increased if it is not needed
Many banks have the option to raise the credit card limit. Some people increase the limit without thinking, although this is not recommended. You will be required to pay the same surcharge as the limit increase as a result. Therefore, refrain from making large purchases.
5. Avoid withdrawing cash with your credit card
Most people make this fundamental error. Although you have the option to withdraw cash with your credit card, you should only do so in life-or-death situations. Most people are unaware that there is a significant service charge of 3-4% on the amount of the withdrawal when you make a cash withdrawal using your credit card at an ATM or branch.
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