Tag: Debit card


How to Make Your Credit Card Work for You, Not Against You!

25
August

Credit Cards

Planning to get a credit card? Before you do, here are a few tips on credit card do’s – measures that will help you enjoy the benefits of credit cards to the max if you follow them to the letter!

Know Why You Want One

First, you have to be sure why you need a card. What is your purpose?

Many people get credit cards so that they can establish a good credit record. Their primary purpose is long term; maybe they are planning to buy a home in the future, or maybe they plan to get a car loan, or apply for a home renovation. Whatever the purpose is, having a credit card and managing it well can greatly help establish good credit history.

Some people get credit cards because they want to enjoy the ease and convenience when shopping online or via the phone. Some get credit cards because it’s easier to use when shopping in Malls and specialty stores.

There are also people who get credit cards for the rewards offered every time the credit card is used. Of all the rewards offered by credit card companies, the most sought after are travel rewards, frequent flyer rewards, and flights.

Be Sure to Get the Right Credit Card

If getting a credit card is really a necessity for you, be sure to get the right card. What will make a credit card the right card for you?

One consideration you need to look into is the card’s interest rate. Ask yourself if you can afford it. It’s also very important that you know the fees and charges that comes with it. Evaluate your finances and determine if you have the capacity to pay off your loan or debt with the interest charges.

What are the features that come with the credit card? Some features come with a higher fee, so be sure to get only the features that you will actually use. There are plenty of credit cards that offer numerous features which may not be very useful for you; so avoid them because they will add up to                                                                                                  your costs.

Use the Credit Card Wisely

The most fundamental principle in credit card use is to “use it only when necessary!”

Do not use your credit card “just because” … this can be very costly. If you have cash, use cash instead of the credit card when paying for things or services.

Pay On Time!

Another word of advice: pay your credit card bills on time!

“On time” means at least two days before the due date. Why two days in advance? The two days will give you an allowance for your payment to reach the company especially if you are paying through the mail.

Next, pay off everything! If you do this, you will be able to avoid interest. This is the best way to make the most out of your credit card; you are using the lenders money to pay for your purchases free of charge.

If, for some reason, you can not pay everything in full, pay more than the minimum. This will lower the amount you owe tremendously, and it will make payment on the next due date easier.

Most important of all, should you encounter financial challenges that will make payment of your credit card debt difficult, refrain from using your credit card for a while. Never be tempted to use your credit card in this situation – it will cause you more trouble later on.  Slow down with your credit card use. Get back on your feet first, that is, financially. Remember that if and when you fail to pay your debts, it will have a negative effect on your credit record.

These tips are like guideposts; when followed, they will keep you safe from financial troubles in the future.

 

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Do You Know How to Get the Most Out of Your Credit Card?

17
August

Credit Card

 

If you are an observant shopper, you probably have noticed that a majority of the people shopping in big stores and malls now use credit cards to pay for their purchases. This is also true in restaurants, in spa’s and salons, in gasoline stations, in airline ticketing offices, actually – practically everywhere.

 

Truly, the number of people using credit cards has tremendously increased. This increase is very apparent if you look and count the cashier or teller lines in shopping malls and groceries exclusively dedicated for those who are paying through credit cards than those who are paying using cash.

Is this a good thing or not? Well, like everything else in life, it depends on how it is used. This also applies to credit cards. In and of themselves, credits cards are not bad per se; it is the manner with which it is used that makes it bad or good.

Benefits of Credit Cards

The use of credit card is designed so that it will be mutually beneficial for all the parties involved. In a normal credit card transaction, there are at least three (3) parties involved: the credit card issuer, the credit card user; and the business.

Credit card lenders offer them to borrowers for a profit. The profit credit card lenders make comes in the form of fees, charges, and interest.

For the business, they make an income when credit card owners purchase their goods/products/merchandise, or when credit card owners patronize their service establishment and pays for the services received. The business’s income then comes from the sales of good and/or services and the corresponding profit from the transaction that took place.

For the credit card user, the benefits are numerous.

One benefit is the ability to purchase things immediately. The credit card affords the holder the convenience of buying something without delay. This can be very helpful during times when huge “sales discounts” are offered unannounced by malls and stores. There are stores that come up occasionally with marketing and sales strategies which offers huge discounts for a limited period; the credit card allows the holder to take advantage of these discounts.

Credit card also allows the user to shop online or purchase things using the telephone. These transactions simply can not be done using cash; hence the necessity for a credit card or a debit card.

Using the credit card to purchase things or pay for services also allows the credit card user to use the bank’s money (or the lenders money) free of charge during the interest-free period; as long as the credit card holder pay’s the total amount before the due date.

The credit card can also be very helpful in paying utility bills before the due date. Failure to pay utility bills on time can be very costly because of the penalty or surcharge that will be added to the amount payable.

Credit cards can also be used to withdraw money from an ATM. This is also called Cash Advance, which comes with a much higher interest compared to the normal use of the credit card (paying for things or services). Again, the cost may be high, but the convenience it affords the user is very invaluable especially in emergency situations.

Credit Card Rewards

Many credit cards also have rewards system, which allows the user to earn rewards every time they use their credit cards. This means that the more often the credit card is used, the more rewards earned. The rewards are also very appealing to almost everyone. Rewards come as free travel miles, free airline tickets, discounted products, or cash back.

In a nutshell, credit cards can be very helpful, but only if you know how to use them to your advantage.  To maximize the benefits of credit cards, always pay 2 days before the due date; avoid carry-over balances; and spend only on things that you can afford. Never abuse your credit card.

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