Plan a Strict Budget
Easy availability of credit may often tempt you to spend more
than what you can actually afford. Such reckless spending may result in
troubles with your financial planning which is not a healthy trend. You must
plan a strict budget and stick to it at any costs. One of the best ways to
track your expenses online or offline is to register your contact number with
your credit card account. Every time you use your card, you will get alerts
over your handset, with the details of your expenses and the balance in your
card.
Don’t Increase your Credit Limit
Once you get a credit card, the bank sets a credit limit based
on your income. In due course of time considering your repayment capacity, the
bank may be willing to increase your credit limit. Although this will enable
you to purchase more it could sometimes put you into endless trouble of debts.
Hence, it would be wise not to increase your credit limits until the end of the
first year or till you get a hang of dealing with credit card payments.
Check for the website address
While shopping online, make sure that the website address begins
with https:// and not http://. This prevents the hackers and other users from
accessing your credit card information. Once you have selected the product, the
site will ask for your credit card and shipping information. After entering
those details, the website will ask for your CV number that is located on the
back of your card. Make sure not to disclose your CV and credit card number to
anyone. Once you are through with the purchase, you can check your card status
online to ensure that everything went fine and no other unofficial activities
on your card have taken place.
Never make online credit card
purchases from a public place
Networks at public places are usually badly secured. They have
key logger software that will keep track of all your keystrokes such as your
credit card number and passwords. Hence you will be at a greater risk where
your card would be misused.
Always Pay the Full Amount on Time
Every month, you will be notified through a statement about how
much you have spent and the due date before which you have to pay the minimum
amount. Make sure to pay the stated amount on time or you have to bear the
penalty.
Secure your card
Whenever you use your card, make sure the salesperson swipes it
properly and there is no chance of misuse. Also don’t share your CV and credit
card number with anyone else. In case you are using the card online, make sure
to print the receipts and verify it later with the billing statements you
receive.
Avoid Cash Withdrawals
Avoid using your credit card to withdraw cash from ATM or other
banks. This is because you will be charged a high rate of interest like 1.5 –
3.5%. This interest continues to get added till you repay the full amount. Also
there is no grace period for these transactions. Hence, you should try this
option only in case of emergency.
Although the credit card offers a lot of benefits, there are a
few common pitfalls that get to be noticed and avoided at all costs. The above
tips help the first time users from falling prey to such pitfalls.
Author Bio: Kelly is a writer blogger. She loves
writing, travelling and reading books. She contributes to Engage
BDR
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