When To Use Credit Cards For Purchases

Introduction

Every time you use Credit card a record of such transaction gets stored into a database of information for your credit card issuing authority—you share your privacy to somebody else. Your credit card issuer will know what you are doing with the credit they have allowed you, whether you are buying secondhand clothes or spending in casinos. It is never a goods protector of your privacy like cash. It provides pretty clear pictures of the users to the card issuer when the card holders use credit cards on many different occasions.

If you have to buy something, buy first but after deciding on the mode of repayment-- cash, check, credit card or debit card. The decision whether to buy or not is of course important to be considered first, but if you really need to buy something, you have to buy it, but all the repayment modes should also be weighed beforehand. This habit will help to mitigate the overuse of credit cards.

Make a vow to purchase something on credit while you have the balance to pay in the bank. Make a promise to yourself to clear all credit card outstanding balance every month. Never allow a balance to accumulate interest. Never use credit cards on impulsive purchases.

Features

The credit cards are effective means for financial resource accessibility during emergency. You must know the repayment process preferred by the issuer otherwise you will land in to a land of high interest ignorantly. Some issuers, for an example, prefer you to clear your monthly outstanding balances every month. So know the proper rule of the game first.

Select a card with lower rate of interest. Different card issuers extend credit on different terms, different limits, with different repayment schedules. A card with higher rate of interest does not necessarily guarantee you excellent service, higher credit limit with many other benefits. Read their terms of agreement in details, specially the fine print items. Select the right card that fits you in maximum possible ways.

Always remember credit cards are not gifts but loans offered to you. When you use credit card on purchase, your duty is to repay the loan within a certain period with an interest. If you cannot, that will lead to a massive debt in future. Never be a reckless user of credit card.

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