subject: How To Maintain Credit Cards [print this page] The concept of Credit cards have revolutionised the financial system through the world. Now the circulation of money has greatly become plastic, with all business transactions preferring electronic money rather than hard cash. The banks have really done a great job in reducing the pain a common man faces if he needs some loan, especially if he already has debts and bad credit ratings. With a Credit card you have the entire world on your feet with any dream at your feet in just a matter of time.
However, there is a conversely dangerous face of this materialistic and attractive scheme. There have been a lot of cases where people have failed to control their spending habits and as a result have faced bankruptcy. The power of Credit cards can sometimes be a bane for you, when you are running short of money, not able to pay instalments on time and have many more bills mounting on you. So to avoid these conditions, here are some tips on maintaining credit cards:
a)Be careful while selecting your credit cards. Don't be in a hurry to take them; you will get a lot of offers. Before you select any card, analyze properly sketch out their advantages. Go with the best offering credit card company and do not fall prey to their hoax calls.
b)The most important factor to consider while selecting a credit card is to know their interest rates and their limits. Try to avoid credit cards offering lot of money for credit, this might invoke you to spend out of your limits.
c)If you have only one credit card, try and apply for some more cards. But make sure that you don't have many of them. Having 3- cards can be ideal if you are well versed with the conditions for each. Learn to use them in cycles, keeping in mind their payment dates. Do make the best use of the grace period provided by each of them and fix your payment dates according to your feasibility. Do not prefer to have payment dates late in a month, because there are chances that you might run out of cash.
d)Always avoid drawing cash using credit cards. This can be the worst mistake anyone can ever make considering repayment capacity. The interest rates are quite high on drawing cash using credit cards. So make sure that you do not use them to draw cash until the situation is really unavoidable.
e)Never ever skip payments for any credit card. The best way to handle this is to schedule payments on the internet with your banking access. Once you skip a single payment, the pressure starts showing up and this might lead to steal your sleep at night.
These few tips can really help you in handling credit cards wisely and never get into their traps.
