Fundamental Steps to Use Credit Cards Wisely

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Fundamental Steps to Use Credit Cards Wisely

Fundamental Steps to Use Credit Cards Wisely

Add to Favorites:

Credit cards are the magic plastic cards that give us the power to buy. Today`s financial order demands us to have sophisticated means of readily disposable cash at all times. But a lot of care and caution must be exercised if you want to make use of credit cards in the right way.

Credit cards are really easy to maintain and use, plus it gives us more accountability of the money we spend every day. All the money we spend using credit cards are generated as a bill which we have to pay at each billing cycle. Also, if we have an online account in the website of the credit card company, we can view the billing statement at any point of time. Almost as soon as any payment using the credit card is processed, the account that is tied to the credit card number is updated. This way, we can manage all monthly expenses and keep a tab on how much we spend.

Credit cards offer us so many advantages and flexibility if used well. It offers us security, comfort of carrying ready to use cash and freedom. No longer will you have to carry a check book or large amounts of money, if you are planning on a shopping spree. What is more, credit cards have attractive reward schemes, which have loads of incentives for every dollar you spend.

Keeping aside the fact that credit cards are extremely user friendly, it has its downside. If you do not know how a credit card should be managed, it can lead to some undesirable financial circumstance, and can land you in financial debt. Understanding the billing system of a credit card is crucial to maintain finances. Every month, after you receive the bill for your credit card, the amount due must be promptly paid before the due date on the bill. If the bill cannot be paid in full, then paying up as much as possible helps a lot because, a very high interest rate will be applied to the total balance outstanding. Usually, credit card companies charge as high as 20% interest for any amount outstanding. This means, if your balance due is $100, you will be paying $20 as interest rates alone, which will bring your total amount due to $120.

Getting used to credit system takes some time. But if you know how to use your card responsibly, then there is no reason not to take advantage of so many benefits.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading
How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

Posted: June 20, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading