Credit cards can be compared to “Shaadi ke laddoo.” You regret not having one and repent if you have one and over spend. But if managed well it can be very beneficial.
If you have a credit card, ensure you do not use credit cards for unnecessary transactions such as:
Using it for daily expense:
The most common mistake people do is to spend on daily expenses such as buying grocery and household items. While it helps you keeping track of your expense to some extent, it may also lead you to over spend. You may swipe your card for more than what is needed.
Don’t withdraw cash:
This is a big blunder most cardholders do. The interest rate charged on cash withdrawals on credit is ridiculously high and is not worth the withdrawal at all. The interest rates on cash withdrawals range between 2-4 per cent per month and they come with service taxes.
Don’t swipe when you travel abroad:
When you travel abroad, carry currency. If you swipe your card, not only are you paying for the expenses, but you will have to bear forex transaction charges also.
It happens to everyone. Once in a while, we go through tight finances. Those months do not yield to temptation and swipe your credit card. Those austere months should be meant for not spending on anything extravagant and maintain so.
Do not use your credit cards to do balance transfer from one account to the other. This could lead you to pay more than what is required.
Do not enter into transactions on unsecured websites: When you are browsing and stumble upon a nice dress but not sure of the safety feature of the website, do not use your credit card for payment. Instead opt for cash on delivery.
So make informed decision as to when and when not to use your credit card.