MARUISM

Why do we need to apply for a credit card or use a credit card?

The first obvious reason is convenience. Sometimes, we run out of cash in the wallet or there are times that money in our personal ATM card is just not enough. In this kind of a situation, credit cards can be your personal savior. Also, having business credit cards will easily get you through dinner or groceries or paying bills when on travel abroad.

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Here are few tips to manage your credit card debt:

1. Examine your spending habits.Did you charge the item because you needed it, or just because you wanted it? And what were your motives in purchasing the item? Was it a necessity?
2. The right timing. They say everything is a matter of timing. Same goes for purchases on credit cards. Try to know the cutoff dates on your cards so you will know when your monthly statement will reflect it.
3. Don’t extend yourself. Try to avoid giving supplementary cards to your wife, parents, children or the dog.
4. Pay it in full. When you charge an item to your credit card, try to pay it in full when the due date comes around. By paying it in full, you don’t incur any interest and thus, everything is wiped clean off your slate the next time you use it.
5. Reduce the principal. If you can’t pay for your debt in full, at least try to reduce your principal debt. The principal refers to the face value of the amount you charged.

Once you have paid off your debt, you will once more be in the credit card issuer’s good graces and be given the chance to own a card again, perhaps not now, but in the near future.

On Credit Cards — Why do we need to apply for a credit card or use a credit card? The first obvious reason is convenience. Sometimes, we run out of cash in the wallet or there are times that money in our personal ATM card is just not enough. In this kind of a situation, a credit card can be your personal savior, getting you through dinner or groceries or paying bills. When you need cash, you can also make an advance on your credit card, for instance to fund taxi fares if needed. However, just take note that, in making cash advances, there are charges added to your credit bill for this service. Second are emergencies like rushing a family member to the hospital. Third, credit cards come in handy for big purchases such as appliances, gym memberships, family reunions, even a dream wedding. However, be a responsible spender, if you handle the time of your purchases right, you may even get the chance to pay it off on installment –interest free.

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