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.
So let us go first with why do you need this credit card?
Let us talk about installments.
The installment basis that we have worked like this:
Get away from paying annual fees!
There are so many charges and fees if you don’t use your credit card properly.
- 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 McDonald’s.
- Always! Always pay before its due. Don’t just pay the minimum payment because aside from finance charges there are also extra fees that are 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 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.