Tips to use your credit card wisely and effectively

I have been using credit cards for quite sometime now and would like to share some tips I came to know of using it wisely, I learnt it from the usage of the same from it. Many would say that credit cards are evil and should not be used at all. But I differ from their views. If you know how to use your credit cards wisely, I say that credit cards are boon especially in circumstances like unlikely emergencies that might ensue without your knowing and you could not get cash immediately. I have had some such instances where credit cards have come in handy during emergencies.

• The first and foremost tip I would give is that never carry your credit cards when you are going for shopping, yes, you are right and you heard it right that never ever carry your credit card for shopping. This will get you into compulsive buying of products that you don't need but wanted to buy it. Always carry cash and/or debit card and this will have an impact on your mind that you are indeed spending your own money, while with credit card, in my own experience, I have found as if I am not spending my own money any expensive products are cheap. Try this tip, you will benefit from it, from my experience.


• The next important tip is about the financial charges that banks charge you every now and then for various reasons like annual fees, joining fees, late payment fees, and cheque bouce fees. Coming to joining fees, nowadays most banks are not charging you any joining fees instead they are giving you back by way of cash backs. Hence this option you can ignore unless some banks charge it. All such additional charges mentioned here can be reversible by the bank if you request for the same, yes it is true that they do indeed reverse the above mentioned fees if you have been charged. Just call the bank's call center number and request for the same, they will immediately oblige it without fail, this is from my own experience too. The annual fees is one aspect, although some banks offer life time free cards, most of us will ignore and will be paying it every year, whereas we have the option of waiving it completely. The late payment fees and/or cheque bouncing fees are another fees where if you forget to pay your bill on time or if your cheque got bounced, they will charge. If you request your bank to reverse it, they will reverse it for sure. Don't ever and never pay annual fees for your credit cards anymore, it is just not worth it. Just try.


• Never ever hold your payment in your credit card, pay your full amount due instead of using partial and/or only paying the 5% revolving credit, this is the major factor in which many of us fall into and get into debt trap. So pay your full amount due unless you have emergency and could not pay the full amount this month but just remember and pay the full amount at least next month. Or else you could use the balance transfer option that many banks are offering these days, some are even offering 0% interest but with a minimal fee.


• The other important aspect in getting maximum benefit from your credit card is that you should know your dates. Especially, you should be knowing your credit card's statement generating date and the payment due date without fail. Try using your card especially the next few days after your statement has been generated instead of within the period. Suppose if your statement is being generated on 15th of every month, try to use your card after 15th of every month, this will let you enjoy the whole credit period the credit card companies are offering. This will be usefull especially if you have more than one card, try to rotate your cards to get maximum benefit from it.


• Don't ever try to withdraw cash using your credit cards, as they attract even more interest than your normal purchases.


• Another important tip would be that don't have more than two credit cards. As this is a bad practice and would often lead to debts accumulating.


• Try to utilize some really very useful offers that the credit card companies come every now and then as well as their and their rewards points.


• If you have a big amount left to be paid in your credit card account and you have been paying only partial payments for quite some time, try to negotiate with that card company on reducing the amount to be paid to a bare minimum that they can afford. Due to accumulation of huge interest rates, most of the banks would accept your offer and would come to a lesser amount and would suggest you the same that you can pay. If you still could not afford to pay, try getting a personal loan and repay it, as personal loans are much cheaper when compared to credit card interests.

• When contacting credit card companies always try to use their toll-free numbers and not the normal toll numbers (most banks will have both). And also try to use their online contact forms if possible (some banks have safe online contact forms). As you know that how long it will take for some banks to get to the "so-called" customer service persons of the respective banks, this will save you time and some extra money on your phone or mobile bills.

These are some of the tips I could remember now but will update more tips every now and then.

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