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These 5 Tips Will Make You A Pro Credit Card User

At some point, you have probably heard of the saying that money makes the world go round. To some extent, that statement is true. It is a fact of life that you need money to survive, whether it is paying your bills, buy something you need or to sort out an emergency.

You will agree that it is not possible to have cash at your disposal all the time, and that can sometimes inconvenience you when you need to pay for or buy something. Such an issue prompted the financial institutions to come up with several plans to get you covered. One of those plans is what is known as a loan. A loan is defined as any financial aid offered to you which you will repay on or before an agreed period, at a certain amount of interest.

Loans have also evolved and assumed more technological forms. One of the ways that traditional banking systems combine with technology to make your financial life easy through credit cards. Credit cards work the same way as conventional loans, and the only difference is that they will not need you to walk into a bank to ask for credit. The repayment of whatever amount you spend on your credit is usually paid monthly.

When you are using a credit card, there is what is known as a credit score. This is usually determined by how you handle your credit and how you pay for it. Delaying in paying your credit will often lead to a plummet in your credit score. However, there are institutions that offer credit cards for poor credit, though it is important to note that the following reasons are what makes you a good credit cardholder.

1. Reading and fully understanding the terms and conditions

When you get your credit card chances are it would be easy to use, after all, it is just a matter of using and paying the credit on time. No, that is not how it works. When you get your credit card, do not smile, and start using it right away. It is usually accompanied by a leaflet containing the directions of use and the terms and conditions.

Taking your time to read them, they will not in any way harm you; in fact, you fully acquaint yourself with all that involves using the credit card.

2. Never share your pin with anyone

The personal identification number (PIN) means just that. It is personal. Sharing that number might expose you to cases of misuse or fraud. Once you receive your credit card, memorize the pin and discard any material that might be having it.

3. Always take your statement

When you walk into your favorite restaurant to eat or drink, you are usually served with a bill. The bill contains the list of food items you have consumed and the prices you are expected to pay. Before making the payment, you are likely going to read the bill then pay. The same principle applies to your credit card.

At the end of every month you will receive your monthly statement, what you should do is carefully read all the expenditures you made within the month then go ahead and make your payment. Reading the statement will also help you identify cases of fraud, if there are any, you will launch a complaint to your credit card provider.

4. Always pay your credit

Sometimes it might be a bit challenging to pay your credit on time, delaying for whatever reason might affect your credit score. To make things easier, it is vital only to buy what you can afford to pay without a struggle. You do not have to use 100% of what you are allowed to use. And remember that paying in time will improve your credit score.

5. Draft a budget always to guide you

With a credit card in your hands, you have the power to buy whatever you want and or whenever you like. To avoid surprises when you receive your monthly statement, it is essential to have a lot of financial discipline. How do you get it, right? Draft a budget and stick to it unless you have an emergency such as a medical situation. The budget will save you from the ever tempting power of impulse buying.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

By Sheena Jordan
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