A Guide to Responsible Credit Card Use

A Guide to Responsible Credit Card Use

Whether we want to admit it or not, payment cards have become a part of our lives. That small piece of plastic allows us to buy easily, pay even when we don’t have enough money, and divide the amount into installments. When you use a credit card, you are actually borrowing money for a purchase that you will make now and repay in the future.

Credit cards are good as servants, but what are they like as masters? Attention is a keyword when using credit cards. Payment cards have replaced cash in a number of situations so spontaneously that we didn’t even notice when this big change happened. They were also created to make payment as simple and secure as possible. You can testify that they succeeded in that endeavor every day since you no longer have to carry large sums of money with you, but only a card. This convenience and ease of use also apply to a special version of ‘small plastic wallets’ – credit cards. Even e-wallets as top-notch payment methods that infiltrated into numerous people’s spending habits (sending money, receiving money, gambling online at best-rated casinos – such as those at TopCasinoExpert.com, subscribing to streaming platforms… ) and that are trying to surpass payment cards do not explicitly exclude them but enable a possibility of acquiring them.

Of course, there are basic rules that you must follow when using a credit card to avoid unwanted situations, and we present six basic rules that will make paying by card a good and stress-free way to make a purchase.

  1. Always Check Your Monthly Statement

At the end of the month, you will receive a statement showing your spending, i.e. the total amount you owe and the minimum amount you have to repay.

On the statement, check that all debits and payments are displayed correctly.

  1. Buy Only What’s Within Your Reach

Buy only those things that you can afford and that you can repay in a reasonable amount of time.

If you know you cannot afford something, simply don’t buy it (no matter how difficult it is).

  1. Repay More Than the Minimum

Each time you can, repay more than the minimum amount of debt. This will reduce the time required to repay the credit card debt and, at the same time, save you money by paying less interest.

If you pay the total amount of debt you will not pay any interest. However, if you pay only the minimum amount, interest will be charged on the remaining amount of debt.

  1. Keep Unpaid Debt Small

When using a credit card, it is important that you settle your obligations on time. If you do not have a payment that covers your debt and the interest that you have to pay, you are entering an impermissible negative balance that is by no means acceptable. 

Only borrow as much as you can repay in a given time frame.

  1. Pay Installments Regularly

Do not skip a repayment or be late with it, so as not to pay additional fees and interest.

If the due date does not suit you, try to change the date in the bank that suits you better and that is in line with your needs.

  1. Fees You Pay

When choosing a card, the interest that has to be paid will play an important role for users, as well as the cost of issuing and maintaining the card. Learn what the amount of interest and other fees on your credit card will be and read the general conditions of using the card.

Conclusion

In fact, there are two golden rules for using a credit card:

  • Count to 10 before reaching for a credit card – this can reduce the possibility of impulsive shopping.
  • Take care of the debts made on a daily basis. Precisely because of the flexibility, the use of the card can very easily ‘get out of control’, which would not be good for your budget.

Before signing a contract with a bank, carefully read the contract that the bank gives you. Consider all of your options carefully and choose the one that fits you best. A credit card should make your purchase easier and allow for easier repayment, and not be the main source of your financial problems, so use it wisely and sparingly.