Credit card is a facility issued to users as a system of payment. The issuer is the lending organization, who agrees to provide credit to the user of the card up to a certain period of time and expects to pay back the lending amount by the user. It simplifies the burden of carrying cash and gives credit when needed.
Before taking a credit card, read the terms and conditions carefully as every card will come with different terms and conditions specifying your rights and obligations towards the issuer of the card. Be aware of interest rates and repayment options while choosing a card. Compare different cards based on your needs and ability to pay the credit back. Don’t be afraid to negotiate the terms and rates with your creditor.
The interest rate determines how much you pay for carrying a balance on your credit card. Get to know about the interest rate on your credit card periodically to be sure of getting the best deal possible. Some credit cards offer a grace period for you to pay your balance before interest begins to accrue.
The best use of credit card can be made by limiting the number of cards and maintaining only one card to manage your spending. Don’t spend more than what you cannot afford and suffer paying on a monthly basis. Keep track of your spending by checking your online account frequently and recording the purchase receipts regularly.
Keep your credit card details like the account number, issuer’s name, phone number, etc. and secure a copy of your credit card hotline number which is at the back of the card. If your credit card is lost, destroy the pin code immediately. Make sure about the legitimacy of the sites while purchasing online using credit cards.