How should we use a credit card? Great question, huh?
I just had my card for almost two months now and I think it’s still a question that I have. But before I actually applied for a credit card. I’ve already read so much things about it and what I have to share are some things they have said in common and my own experiences.
- Don’t go beyond your limit. There are over limit fees you know! They may set you a limit, but for the creditor to have a chance to charge you with this. They may allow you to over limit your credit. I experienced it before and had to pay 300 php extra out of my bill that is an equivalent of 2 value meals at McDonalds.
- Always! Always pay before its due. Don’t just pay the minimum payment because aside from finance charges there are also extra fees that is being calculated annually because of overdue invoices.
- Don’t do a balance transfer. They don’t have interests, but transaction/processing fees may apply.
- NEVER EVER GET A CASH ADVANCE! Man! This has a high interest. It can be a percentage or a fixed amount of interest usually they say “WHICHEVER IS HIGHER”. As far as I know this one doesn’t have any grace period.
- Use cash when paying your bills.