Building A Trouble-Free Credit Experience

Pay attention everyone because this is must-know information for all.

Credit cards are not just cards that you can flash around in shopping centers or fine dining restaurants. They are not only cards that can substitute cash. They are cards that can bring you six feet under, if you do not use them vigilantly. Literally!

There had been cases of suicidal attempts in the past due to the mounting debts out of the credit card usage that could not be settled. But do not blame the card! The card does not have the power to create perils for you, unless you use it erroneously. So here we are to educate you, especially new users of credit cards.


HOW CREDIT WORKS?

Credit card is a useful tool to reduce the load of cash in your wallets or handbags. It could even reduce the risk of your cash being stolen! The card also serves as a means for spending on more costly items, which lets you keep your finances more intact. But how does this surrogate of cash turn into your worse nightmare? Well, it occurs when the user spends too much! So here are some guidelines on how you handle the dollar value of the card with care:

§ Do not purchase what you think may lead to over-expenditure, no matter how attractive the item is.


§ Settle your bills punctually. Late bill payment will cause accumulation of debts and be recorded as late payment, which can tarnish your credit history.

§ Practise monthly budgeting and abide by the budget set.

§ When applying for the card, make sure that the card terms are within your spending power. Most of all, understand the terms and conditions before duly signing the agreement.

§ Save the dollar value of the card for urgent matters.

§ Spend with your credit card wisely, like how you would spend using your cash.

§ When settling the bills, pay them in full amount to avoid payment of interest charges.

§ Keep your credit card safely with you, and keep the card information confidential. Should you lose the card, immediately call the bank to report loss and terminate the card usage. This will protect your lost card from the hands of somebody else, and from having to owe the bank a large sum of money because of credit transactions that somebody else has made.

§ Organize your receipts, preferably according to the months. You’re your statement arrives, examine thoroughly as to whether the expenses reflected in the receipts tally with those reflected in the statement. If there are discrepancies, contact the issuer of the statement immediately.

§ When at the cashier counter, do keep your eyes wide open and check that the card amount spent keyed in by the cashier is correct. This is to avoid accidental over expenditure of your card.

Credit cards can serve as a friend to keep you company when you are dining, shopping, or attend to emergencies. But if not being handled with care, they can become your worst enemies! So handle your credit cards with care. For those new users, read these tips carefully.


"Be safe, not sorry..."