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Credit Card Applications » Questions » User Questions » Limited/Bad/Fair Credit » How do you use credit cards right?

How do you use credit cards right?

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If you have a credit card already you must know that it is something that must be used carefully. Credit cards have a number of pros and cons associated with using them and they can be quite a handy one especially in case of some short term emergency or the like. Based on what sort of a credit card you have applied for or gotten you can get travel insurance, added miles on travel, hotel or car rental discounts and fabulous cash back offers as well.

If you use a credit card wisely, you can also make sure you have a positive credit history. As your credit history improves and you maintain good credit scores, you can additionally also be eligible for cards with low interests and no annual fee. Take care that you do not consider the credit card to be your emergency fund, you would end up in more debt than you can handle should you do so. Rather keep it aside for an occasional purchase and make sure you only buy what you need and can close the balance sooner than later.

Credit cards are great for bulk purchases. In case you want to buy something really expensive you can do it with your credit limit and then pay it off over installments. The problem is when you buy too many large purchases and do not have money to meet with the payments. Then you end up with fees and interest rates that will simply throw things out of proportion. If you wish to buy things over the internet or on the phone, then also credit cards are very useful. It is also safer to have your credit card than to carry cash in bulk when you shop and when you travel. Of course do make sure that anywhere you go the billing on your card happens right in front of you. People can swipe your card and commit fraud where you end up with large bills for places you never went to!

People with great credit scores and who use their credit cards properly have come back with absolutely no problems in using them or keeping their balances well below the credit limit. These people have learnt to pay off their bills on time and also the importance of maintaining a good credit history. If you can decide how you can best use your credit card and you know you can manage your debit to credit ratio well then you should consider getting your card soon!

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