Effective Ways Of Credit Card Usage
Credit cards have changed the way we shop and do things, financially. Earlier when there were no credit cards or cards for that matter, payments needed to be done in cash or exchange of something valuable.
With the invention of credit cards there are many uses and drawbacks, mainly based on how we use them. If you are aware of your expenses and limit them to only very needed ones, then surely you won’t be under any stress. Find more ideas on https://mypaymentsavvy.com/ and stay debt free.
However, this group of population is rare. The major group are those who spend on cards, especially credit cards and later while due payments find it extremely difficult, make late payments and sometimes lead to card cancellation or being penalised from the banks.
There was times when the card system was newly introduced people found ways to escape the payment methods by discarding the cards. But now with complete tracking systems, it’s highly impossible to carry forward such fraudulent methods, the result will be landing in jail for the offense and severe penalties.
When you are a real good and loyal customer understanding the terms and other conditions, making use of the offers, you can surely be benefitted from them. It all depends on how you intend to use your card. If you are a credit card holder, then you must definitely read the below page to learn how to effectively use your credit card and be benefitted. Forget about fraudulent ways and learn to earn being loyal, that’s the way it works best, for you and the bank.
Choose the right card:
Selecting the provider (bank) and type of card is the prime task you should be concentrating on. Select banks which have lesser interest rates and give you good promotional offers or offers for being a customer.
There are many banks which provide you vouchers when your bill amount exceeds certain amount. You can save in this way, food bills or entertainment expenses. Just don’t accept it because they are giving away, think and read about the benefits and then make the choice. Certain banks also offer you discounts on foreign travels and don’t charge you a penny of interest when you travel overseas.
Read between the lines:
It’s a very common and often seen practice, that we ignore few lines in between and read the terms. But, don’t continue it anymore. Read between the lines to know the exact payment ways, late payments column and all other details. Sometimes without being notifying the customer bank people tend to change the charges and other fees. So make sure you have knowledge of them.
Check for the final deadline extension for payment without penalty, and make payments right before the date. Check the time taken to transfers reflects in the account to avoid penalties even after payments. Also, check your account statement online to discard any extra charges being levied on you, in case where you have to call for the customer service. Negotiation works best here.
Make payments on time
Banks never work with an excuse. You can’t give those excuses for late payments, your card will be cancelled for no reason and notification after continuous number of times of late payments. Better to be safe than sorry. Few cards charge you close to 4% as late payment fees, which can be avoided by paying on time. You can surely save on that money and spend for any other purpose. In case you are making online transfer, be sure to make them days ahead of time, so that there isn’t any confusion about it reflected in the account. Else, you will still be penalised for late payments.
The plus of making payments on time is that, you become a loyal customer and will be entitled for extension of limits, various offers and discount vouchers, free coupons for food, movie tickets will be yours and you can negotiate the interest rates for your loans. When you have so many good offers, why do you waste them and spoil your score! So, be on time and enjoy the benefits!
Make use of interest free period:
Few credit cards come with an interest free period, make use of them. While the billing cycle is far, you can make use of purchasing without bothering about the interest that will add up to the bill. But, read for the cycle correctly, because it varies from banks and card types.
When you stick to these principles, surely you will be enjoying the freedom of credit cards.