Playing safe while using credit cards

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Playing safe while using credit cards

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The way credit cards are used varies from customer to customer. For some, it is an alternative to cash, that is used for only online transactions and when the cash isn't available for a quick payment. There are others, who use their credit card for every single transaction. If you belong to the second category, you need to play safe and maintain some precautions in order to avoid accumulating a credit card debt.

Spend only when you need to

The fact that customers don't have to pay cash immediately, often leads them towards unnecessary expenses with a credit card. Customers have forgotten that credit cards are in place to make payments easier. However, at the end of the day it is still a debt that one must repay. In such a scenario, customers have to be really careful to purchase items that they absolutely need irrespective of whether they have cash or card. Remembering that the payment is due at the end of the month would help.

Don't miss your payments

The very fact that you have an outstanding balance at the end of the billing cycle indicates you have made purchases that were beyond your means. However, you must ensure that you pay the outstanding balances as quickly as possible. If the balance is within your reach then pay it off before the due date to avoid late fees and other penalties such as an increase in the APR. If the balance is beyond your reach, as far as repaying a single payment is concerned, ensure that you make the minimum payments or bit more. That way you will prevent it from accumulating.

Don't shop for rewards

Rewards should be the result of your spending. Rewards shouldn't really be the cause of your expenses. Buy what you must and if you have a good credit card you might earn some savings, whether it is through cash back or discounts. On the other hand, those who shop to avail loyalty points or discounts that come with milestone purchases, always end up with a massive debt.

Be wary or multiple credit cards

When it comes to using credit cards, stick to just one card instead of maintaining multiple accounts. Numerous accounts lead to multiple debts, varying interest rates and utter confusion that would only harm your credit history without offering any real benefits.

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