Exerting care and caution while using credit cards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Exerting care and caution while using credit cards

Exerting care and caution while using credit cards

The content is accurate at the time of publication and is subject to change.

If you are among the people who think that using credit cards wisely is an easy task, then you are in for a surprise! Using credit cards needs a lot of care and caution in order to ensure you don't fall prey to credit card debts out of which it will take ages to wriggle out. There are a few dos and don'ts that every person applying for or owning a credit card should be aware of.

What you should do

First of all, before you decide to use the credit card for any purchase, make sure it is something you cannot live without. Using credit cards for accessories, furniture, products and services that can wait is a foolish decision. It will only lead to unnecessary debts.

In case you are undergoing a tough time in terms of finances, it is always better to call you credit card issuers well in advances and let them know that you will not be able to make the payment for that particular month. Some banks will waive off the late fees and other penalties if there are informed well in advance. You can also negotiate on better payment terms with the bank so you can continue making payments to clear off the debts without incurring any more.

What you should avoid

Do not use your credit card to pay off your utility bills. It is one of the easiest ways to accumulate debts on your card that eventually spiral out of control. Remember, your credit card is not an alternative to cash, so use it only in cases of dire emergencies.

Don't skip your monthly payments on your credit cards. This is one of the worst things that one can ever do. Not only will you carry over the debt to the next month, but you will also increase the outstanding balance because banks tend to add a lot of fees and penalties for payments that are not made on time. If you cannot pay off the balance in full, at least ensure you make the minimum payment due on your card to stay in the good books of the banks, thereby safeguarding your credit history and score.

Do not ever opt for cash advance on your credit card. Cash advances usually have a higher rate of interest as compared to the purchases made using the card. They do not have any grace period associated with it too. Hence, stay away from withdrawing cash using your card until you are left with no choice.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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:

Related Research:

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Posted: June 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Posted: May 30, 2020

We evaluated store credit cards offered by our partners to find the best store credit cards. They are often loaded with perks that will allow you to save on purchases at your favorite retailer. Plus, many store credit cards are available… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!