How to use Credit Cards?

The number of uses of credit cards has gone up immensely, and it has shown a remarkable shift in people’s choice. Cards offer convenience and safety; many don’t know how to use cards rightly. It is the reason why users avoid this techno-friendly choice to make payments. These cards can be issued by credit card companieswho help you build credit. Visit for more.

What is a Credit Card

A credit card is an electronic card with unique numbers coded on it. Credit card usage has expanded exponentially in the last couple of years. The user needs to know how to use these cards effectively. When you swipe the credit card, it doesn’t seem that you are withdrawing money, but it means you are borrowing money. Without knowing the proper usage, the user can easily fall into the debt trap.

Rules to follow

  • This electronic card can be obtained from any bank based on your income, debt, and credit history.
  • Decide the credit limit as it is the maximum amount you can spend.
  • Once the card is activated, you can use it to make payments just by swiping your card.
  • You will receive the notification regarding the transaction from the card issuer.
  • Enter the OTP received on the card machine at a store, restaurant, or website.
  • At the end of the month, always figure out and cross-check the statement balance, current balance, and available credit.

Points to remember

  • It is effortless to scam credit cards. Do not disclose or share details of the card to anyone. It will save you from misuse and losses of cards.
  • Keep notifications turn ON for cards as it will help in availing any offer in the future from the service provider.
  • Do not keep outstanding balances as they will cost you even five times more in the future. Control your expenses by making a budget.
  • There is a fixed charge for all advances. So, don’t make frequent payments as they might lead to high fixed costs.
  • Keep in mind the limit printed on credit cards and keep more cards as it will help in dividing your spendings without exhausting the limit.

Tricks to avoid the debt trap

  • Keep your balance low to limit the credit. Prepare credit reports which are used to generate credit scores.
  • Control your expenses. It is not the availability that you keep on utilizing credits, and it is the facility for instant payments in need. Make your expenses to the limit you are capable of paying back.