(Akiit.com) Some people are wary of getting a credit card, as there are so many horror stories that involve people unwittingly ending up in debt because of them. It’s true that it can be easy to fall foul of credit card debt if you aren’t sensible, but you shouldn’t need to worry about that if you use yours sensibly. Here are some brilliant points that should help you be wise with a credit card and to stay well away from any debt.
Find The Best Card For You
First of all, you need to make sure that you choose the right card for you. Generally speaking, it’s best to stay away from any that have high interest rates, as you will find that your monthly bills are extremely high. If you aren’t sure which card to go with, you can find a lot of help at sites like CardGuru. These comparison websites will show you the benefits of each card as well as their disadvantages, so that you can easily figure out which one is the best for your financial needs.
Increase Your Credit Card Repayments
When you get your credit card, your monthly repayments will probably be set at the minimum amount. It’s possible for you to increase these repayments, and it is a very good idea to do so. That way, you can reduce your outstanding bill a lot quicker and you won’t be charged so much interest. In fact, if you can afford to do so, you might want to consider setting your direct debit to cover the full amount of each monthly bill.
Say No To Store Cards
Store cards are basically credit cards in disguise. They give you the chance to purchase items from the particular store with credit. However, they often come with a few more disadvantages than your average credit card. For example, they are known for having extremely high interest rates. The stores also sometimes offer what seem to be good discounts and deals, trying to tempt you to buy more from them, which can lead you to spend a lot more than you would usually during the month. As well as that, most of them often come with expensive service fees.
Reduce Your Credit Limit
To make sure that you are never too tempted to use your credit card all the time, you might want to reduce your credit limit. That means that you will only be able to build up a small amount of credit on it each month. It will certainly make a big shopping spree not quite as easy to get away with!
Always Check Your Monthly Credit Card Statement
Keep your receipts and double check them with your statement. This gives you the chance to make sure no unexpected payments have been charged to you. You will also be able to see how much you have been charged in card fees and interest.
Do you think that getting a credit card would be useful? If so, don’t forget these points!
Staff Writer; Doug Ross