Credit cards are a useful payment mechanism as you don't have to carry around much cash for your purchases They are especially useful for people who travel frequently within the country and abroad Credit card bills give you an insight into your spending behaviour at the end of the month or quarter They provide you a ...
When Credit Is the Best Option
Avoid Using Your Credit Card When You're Intoxicated or Hungry. There are times you're less in control of your decisions than others. If you're intoxicated or even hungry, you could spend more than you planned. Don't shop when you're hungry and only carry a limited amount of cash if you plan to drink.
Using a credit card is best for this because you don't have to front the money. For example, when you travel for work, you'll need to pay for a hotel, car rental, food, and probably a few other expenses. If you use cash or a debit card, you're out that money right away.
If you decide to use your credit card for everyday purchases, it's crucial you make sure to only use it for things you would otherwise be comfortable buying with your debit card. Make sure you can pay off what you're putting on the card on time each month, especially if you want to avoid making interest payments.
The next time you make a purchase with a debit card and are asked to choose between credit or debit, remember that the credit option isn't a credit purchase. ... The transaction won't help you build credit, and money still gets taken directly out of your bank account, even if the transaction is pending for a few days.
It's Best to Pay Your Credit Card Balance in Full Each Month
Ideally, you should charge only what you can afford to pay off every month. Leaving a balance will not help your credit scores—it will just cost you money in the form of interest. ... For top credit scores, keep your utilization in the single digits.
Nothing much happens if you don't use your credit card for a month. You'll just need to keep up to date with your monthly payment if you have an existing balance. ... Interest still will accrue on any balance you had from past months, and you'll still need to make a monthly payment on that balance.
A debit card is a lot like cash, because transactions are instantaneous. The minute you check out is essentially the minute that money leaves your bank account. Using debit cards can be risky, too. They don't offer a lot of financial protection and are more attractive to thieves in certain situations.
Disadvantages of using credit cards
9 disadvantages of using a credit card
Yet No Comments