How NOT to Use a Credit Card?

The world has reached such a stage that you will see almost everyone holding a credit card. However, not everyone is benefitted by this plastic money. There are some reasons to it like there are people who are not able to manage their expenses prudently and hence might dig themselves a well of debts. A credit card is more about how efficiently you can use your loan card and still be a benefit. So, make sure to abhor the following don’ts that are concerned with the credit card:

How NOT to Use a Credit Card?

how not to use a credit card

  1. Do not Sign Up for Each and Every Card
    There are hundreds of banks in the market, and almost everyone will call you up offering a credit card along with some gifts. But, do you think it is a good deal? No, you should have the least number of cards possible and nothing more than that. Many cards can only ruin your credit score and might let you mismanage your finances too.
  2. Stop Making Partial Payments
    You should abstain yourself as much as possible from making the partial payments. This might incur you finance charges, and you will not understand how much extra you are paying for the small things. You will not even be able to calculate as you don’t understand what criteria the bank follows to levy the charges if it is simple or it is compounding. There are banks that charge finance charges on the total amount due, no matter the part payment has been made. There may also be a case that the charges are being levied only on the remaining amount. Such a calculation may be chaotic to you. It will be better to stay away from these charges.
  3. Never Withdraw cash from your Credit Card
    Every card comes with cash limit, but it is for emergency purposes and you are incurred with a lot of extra costs like transaction cost, finance charges and much more. However, you should never take the privilege of this benefit as it is more or less not a benefit to you.
  4. Don’t make any Delays in Payments
    You should always make your payments on time as this might have a bad impact on your credit score along with many charges that you might have to pay. The bank may also threaten you if you aren’t regular in making the payments on time.
  5. Don’t Help your Friends with your Credit Card
    You should understand the fact that the card has been issued on your name and no matter who is buying from your card, it is you who will be chased in case the payments are not being made on time. So, make sure not to do any good deeds with your credit card.

A credit card is nothing but a liability. Use your wits and be an intelligent customer of the bank.

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About the Author: Helen Graham

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