Nowadays, a lot of people have been hit by the recent economical crisis. As a result, a number of them have decided to get their first credit card. The use of one may benefit you in many ways, such as buying good and paying for them in installments or planning a refreshing trip to one of your favorite destinations around the world. You can even withdraw money from the card’s account. However, this is a recommended option only when you are in great need of cash and there is no-one to borrow that amount of money from. The reason why about it will be explained below. Without any further delay, here are our tips on the matter of your first credit card.
1. The credit card is an element that works like cash.
The best way to use the card is to buy only what you can pay for in compliant manner, in a single installment. The banks that offer this service get a greater profit when you pay in multiple times a smaller (or the minimum) amount, as this adds up to interest. Starting the day after your court date, interest begins to run and increase the amount you originally had to pay by a fixed percentage.
2. Avoid unnecessary purchases.
Although it sounds very basic you have to be rational to spend only on what is necessary. While companies design promotions to encourage consumption, learn to not be swayed by commercial attractions and its ‘outbursts’ as this will only lead you to use your credit card and, accordingly, pay more money when the appointed day of paying the card bill arrives.
3. Do not spend more than you receive.
This is the most important thing to keep in mind when you decide to get a credit card. If you find yourself having to borrow money to pay everything at the end of the month, you should take immediate steps to resolve this situation. One such measure would be to reduce those expenses you make without thinking too much about. When your financial situation improves, you can retake them.
4. Avoid using the card when the court date approaches.
The reason why you shouldn’t do that is because this leaves little time between the date of purchase and the date of payment. So, even if you have a certain amount of money in mind for your paying, extra expenses at the end of the month could result in your not having the money needed, precisely due to the date.
5. Program your monthly card payment.
In this way, it is easier to have your expenses under control and meet them. By doing so you avoid exceeding your budget and you have the time necessary to think about your purchases, various bill payments etc…