5 Credit Card Do’s and Don’ts

Using credit cards may be a little daunting for some of you but you know what?  Credit cards are not scary, or at least, they don’t have to be.

With proper use, a credit card is very convenient, especially in emergency situations and has several perks and rewards that you can take advantage of for more savings.

On the contrary, improper usage can put you in loads of debt and a financial disaster that is quite hard to recover from.

That being said, here are 5 Credit Card Do’s and Don’ts that you need to be aware of:

DON’T charge what you can’t afford.

Treat your credit card the way you treat cash.  Don’t make the mistake of buying expensive items that you know are beyond your budget.  Owning a credit card doesn’t mean that you can now splurge, overspend and live beyond your means.

DO create a budget.

Having a budget will let you manage and understand the ins and outs of your money much easier.  This way, you are able to track your cash flow and expenses and avoid the mistake of making credit card purchases of items that you can’t pay for with cash.

DO pay your bills on time.

If you don’t want you pay for late fees or a higher interest rate, make sure to pay on time.  Set an alarm or notifications to remind you of your due dates. In case you won’t be able to pay on time, contact your creditor to work out some arrangements.

DON’T take cash advances.

Even though it’s very easy to borrow cash from your credit card, this transaction is very sneaky and can result to credit card debt.  This is also very expensive.  How?  That’s because you are charged a cash advance fee and an ATM fee on top of that.

DO review your credit report.

Don’t become a victim of inaccuracies.  Always make it a habit to review your credit report to spot incorrect info, errors and omissions.  Report these errors right away so it can be fixed and removed as soon as possible.


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