How to Use Credit Card Responsibly.

 According to recent research, the average American has credit card debt of almost $ 7200 each. Credit cards are useful things if you use it properly. There are several benefits of credit cards for individuals and businessmen.

My friend use credit cards from three different banks. He buys things from a hypermarket in bulk quantity. He uses a credit card to buy online mobile and laptops and other useful things. So, he received a discount of 10% 0r 15 % on his credit card. This facility is not given by cash delivery.

My friend also buys online different devices and pays online bills. He also makes electricity bills and other bills with credit cards.

The most important thing, he saves cash and time. He makes on-time payments of the bill every 15th of the month.

So, with good money habits, the credit card will give more security and facility to make payments online. If you make payments on time, then the bank does not charge any annual charges, also your credit limit increases after six months. Especially, it will be helpful for businessmen to make payments on time.

How credit card works?

                                        Credit cards allow you to the facility to make purchases and pay bills after one month. A credit card helps you to build credit and make a purchase and pay every expense. The credit card provides you a facility to manage your debt responsibly. Getting knowledge, of how credit card works? You must know about the benefits of credit cards.

A credit card is Secure for online payment.

                                                                    Once a time I have to pay some money to any person. So, I use a card for online payment. There are no extra charges. Some people don't use credit cards wisely, they lose their creditability and do not change their bad habits.

Here I have some useful tips for you, to follow, enjoy the credit cards for a long time, and also security.

1. Pay your bill on time every month.
2. Never pay bills late.
3. Safe your card from suspicious persons.
4. Build your credit every month.
5. A credit card is connected to your budget

•  Pay your bill on time every month.

                                                     This is the most important thing to avoid you do not late payments of a credit card. Credit cards allow you some benefits but it can be dangerous if you do not pay the bill on time.

A credit card allows you to use the money within the limit and make payments in time. Otherwise, the bank takes you some charges, and eventually, you suffer into debt. Use a credit card for small payments and a short period of time. It can not be used for amount of debts for a longer period of time.

• Never pay your bill after the date.

                                         Use good money habits and not make payments late. You can set your mobile as a reminder for payment date also email. Sometimes banks give you a facility alert message to make payment. 

It is important to increase your credit worth and bank give increase your credit limit. It is easy to plan to make an auto payment. You asked your bank to automate the deduction of your bill from your account, so you do not need to track the bill.

You should know credit fees charges, in case of late payment & keep eye on your limit.

• Safe your credit card from suspicious persons.

                                                              There are two credit cards. One is secure and the other is an unsecured credit card. Secure credit cards need a minimum deposit of at least $ 500. Credit cards are more secure than debit cards. 

If your card is theft or stolen, then you asked to the bank to stop payment of your card immediately or you can freeze your credit card or you can cancel your credit card for payment online.

 Your credit card information will be secure and safe. You should use your credit card in a secure place, not a public place wife network. 

Also, you should not give your credit card to other people like your friends. 

• Build credit card History.

                                A credit card is like a loan, you have to pay a fixed date. Being a good customer, you pay regular monthly bills on time and few purchase every month to achieve the purchasing target.

If you fail to make payments on time, you do not build a credit history.

If your credit history is good, then the bank increases your credit limit and also rewards you as a good client.

You should maximize the use of credit cards to get rewards. You check what are credit score is during this month?

• A credit card is attached to your cash budget.

                                                            You are wondering, how to best use credit cards?it is a simple formula, use a credit card within the limit.

When once your purchase limit if fulfilled, then you keep a credit card in a drawer until the next month start. You should check your monthly bank statement. How much purchase do you make each month?

Also check your budget is the same according to your credit card. You can also create an emergency fund account. If your car breaks down or you lose your job or serious illness. You keep a small penny to your health every month or every week.

• Earn Reward for credit card usage wisely.

                                                       Earn 1 point for every single retail purchase. When you purchase extra, they can help you. You should use a local business card and an exciting travel reward. For a new account, they give 5000 score points if you spend $ 1000 on the purchase within three months or one month. 

It is different from one bank to another bank. American banks give you digital wallets if you pay bills with a cell phone. Digital wallets are apps of credit cards of credit version stored in it.

They give you free of cost travel accident insurance. Where you children up to 19 years get insurance card in case of an accident. This facility is given by travel by bus, air travel or ship or taxi. They cover your children with all types of accidents.

The Bottom Line.
                            It is better to use cash for the purchase. The credit card has two aspects, one is strong and the other is weak. So, you spend it within the limit. Some people use a credit card above the limit, nay suffer in difficulties. If you are not using properly credit card, think about another form of payment to avoid debt.

The best use of credit cards is to use credit cards only for a big purchase, and loans easily pay back every month. When you use a credit card with a good strategy, it will help a long way to your credit history and earn rewards.

If you are not following good money habits to use a credit card, then you pay high interest and also credit card debt and it is dangerous to your credit health.

Tags: Credit card, Money, Personal Finance