Credit Card Cash news Shopping with a credit card is fine, but withdrawing cash from it can be a disaster. Because unless you fill the pie, you will be trapped in the web of interest.
Credit cards are one of the few financial instruments that provide instant liquidity in the hands of any individual. However, you should use it very carefully as it is an unsecured medium of finance. However, many people feel that it should be used in emergency, so it can be said that this is not the case either.
Credit card gives you financial freedom on one hand, while on the other hand it is very convenient to use as compared to cash. Here we will talk about some such ways, through which you will be able to take maximum benefits from your card.
Don’t Utilize Entire Credit Limit
Every credit card comes with a specific credit limit. This means that you can use your credit card only up to that specific limit. The limit for different cards may be different. However, it is not necessary to utilize the entire credit limit. If you do this consistently then your Credit Utilization Ratio (CUR) gets affected.
If the credit taken by you on the credit card is divided by the credit limit, then the CUR comes out. It is in your advantage to keep the CUR within 20-30%. The more you swipe your card, the more you will need to pay. If you repeatedly exceed the limit, you will be considered a Credit Hungary borrower, who lives on the amount borrowed.
Pay dues on time
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Although, this is not to be said, but many credit card users do not pay much attention to this thing. The point to note here is that the credit card company allows you to use the money for a specific period without any interest.
This means that you are given a date to pay the outstanding amount and if you are unable to do so, you are charged a much higher rate of interest. Along with this, if you do not make payments on time, then your credit score gets affected significantly.
Some people pay only the minimum amount to avoid fines. This is not a good thing as your dues are constantly increasing over time and paying it after a period of time can become a very challenging task. The interest charged on it can add to your problems.
Understand reward points
You get reward points for every credit card purchase. These points can later be redeemed as gift vouchers or cash rewards. Wise use of reward points is very important for proper credit card usage. You should make sure that you shop in such a way that you get the best deal from your reward points.
Do not use credit card to withdraw money
Withdrawing money from an ATM by swapping a credit card is quite different than withdrawing money from a debit card. By doing this, you do not get the interest free period, but as soon as you withdraw the money, the interest starts accruing from the same moment. Not only this, you also have to pay a cost for every withdrawal.
Keep card details safe
Keep the confidential details attached to your card safe. Keep your PIN, CVV number, expiry date and other details secure so that no fraud can be seen on them. Never share these details with anyone under any circumstances and just swipe them on the designated POS machine. Swiping on an unsecured machine can leak all your confidential information.
what to do after all
By keeping these things in mind, you will be able to make full use of your credit card and deal with the cash crunch in a better way.
