Owning a credit card comes not only come with numerous facilities and conveniences but also with certain responsibilities.
A credit card, if not used wisely, may turn out to be more of a burden than a luxury. It can encourage overspending, which can make it difficult for the owner to pay monthly credit card bills causing higher interest rates.
Another issue that a credit card owner may face is exceeding their credit limit. There are two scenarios in such a case that can happen. Let us have a look at them.
A) Transactions may be declined
B) Credit card owners will be charged with an over-limit fee
Both these situations can prove to be unfavorable. Lastly, credit cards also carry the risk of frauds. However, all these issues and risks can be avoided if you are following these handy credit card tips and tricks. Continue reading to know more about them.
Get your Card from a Reliable Company
While most of the credit card amenities and benefits may seem same on paper, there are certain points that make one company more preferable than others. For example, the interest rate and payment conveniences may differ. Furthermore, there are certain Canadian credit card companies that do not require users to pay an annual fee. Thus, when applying for a credit card, make sure you are getting it from a credible company considering all the important factors.
When applying for a credit card, carefully read the terms and conditions. Not many people pay attention to this but it is important to know what are the terms and conditions laid by your bank or financial company for enjoying the perks of a credit card.
Control Your Expenses
This one is an obvious tip many people fail to follow it. With credit cards, they tend to spend more than they actually should. The consequences of this habit can be very unfavorable. Therefore, it is highly recommended to keep an eye on your expenses and avoid impulsive shopping; it is a major factor that leads to interest rated fees.
Not All Deals & Discounts Are Attractive
Many people fall prey to deals and discounts offered by different credit card companies in Canada to their customers. They take it as an opportunity to get the luxury product/services that they always wanted at reasonable rates. In most cases, these deals and discounts are beneficial for the user. However, many people indulge in unwanted spending due to these deals and discounts. They are lured in by these attractive deals and end up spending extra; as a result, they find it difficult to pay their monthly credit card bill.
Accumulating interest on a credit card can be harmful. The more interest is accumulating, the more difficult it can be to pay it off. Hence, make sure you are paying it off as soon as possible to avoid landing into unfavorable circumstances. The first and foremost advice will be to never let the interest accumulate by paying the monthly bills on time. However, in case you have not been able to do so, make a point to get rid of the interest as soon as you can.
Lower Your Credit Limit
This tip is suitable for those people who cannot control their habit of shopping with their credit cards. They can request their bank or credit card company to lower their credit limit. This will help them to control their expenses and their credit card use will remain in check. There will be no extra interest piling up. However, exceeding the credit limit is an issue, which they might have to face if they are opting for this way.
Do Not Be Fooled by Reward Programs
Many Canadian credit card companies offer reward programs with the use of credit cards. They urge their consumers to use their credit card more often and earn reward points. These points can be redeemed in different ways. Many people, in their quest to earn these reward points, tend to use their credit card more than required. As a result, they become the victim of the curse called overspending.
There you have it! These are some of the tips and tricks that will help you use your credit card wisely and thoughtfully.