A few years back, applying for a credit card was a lengthy and problematic procedure that might give a headache to the customer. Earlier, having a credit card signifies keeping privileges in your pocket. But gradually, the concept began to change. When it becomes a problem from privilege, we do not wish to know. Nowadays, 2 out of 1 person possess a valid credit card. Also, countless financial companies in the market offer credit cards either at a meager cost or no cost.
In the pride of holding a valid credit card, customers forget about the disadvantages of it. We all want to see unlimited spending with a credit card, but it becomes a headache when it comes to paying back the due amount.
However, never forget that credit cards of ikano bank can also be a fascinating tool if you use them wisely. Word credit describes the disadvantages of a card, but if you are aware of the correct usage, you shall not get any loss in your account. These days, many financial companies and banks offer points on their credit card that allow the customer to take double outcome with single spending.
What points should take care of while holding a credit card?
In this article, we intend to point out all necessary points that assist you to use a credit card in correct way. Maintaining the terms and conditions of your credit card can be tiresome, but it is not as difficult as it seems. Ultimately, poor usage can derive a poor credit score that influences others to stop providing you further credit in the future. Therefore, we help you with appropriate points that maintain your credit score and financial funds.
- Never miss your credit card payments
Often, a miss in credit card payments might create a negative impact on your bank balance. As at last, customers are charged with a higher rate of interest which gives a hit on their pocket. Frequent miss in the credit card payments is also considered an illegal act or might declare you a fraud. Of course, you have sufficient time to make the payments, even in split amounts. In such cases, companies only charge a monthly minimum balance, including interest. But a delay in payments will charge penalties plus a higher interest rate.
Within one and half month, a cardholder is supposed to make the payment. On the other hand, companies start to charge higher interest rates and penalties once that period gets over. In case of no payment, companies declare you a fraud by suiting a law case upon you.
Under unpleasant circumstances, it is completely understood; however, they still charge a late fee on your card. Therefore, it would be good not to overlook any payment. Try to reimburse the bills within one and half month days or in minimum monthly payments.
- Never take out cash through credit cards
Keep this your last resort, but never withdraw cash from your credit card, even during an emergency. According to the analyses, withdrawing money from a credit card is equivalent to taking a loan from a bank. It has two side effects; first, it creates a negative misleading report on your credit score, and the second user has to pay a higher interest rate along with the principal amount.
Customers who withdraw cash through credit cards are considered defaulters; therefore, it would be best to neglect it. However, if you do not have any objection to paying higher bills, it is acceptable. Yet remember a crucial point, a credit card cash withdrawn not only hurt your pocket but also charge 10X the amount from the cardholder.
- Never share your credentials
Generally, it is neither a safe nor a good idea to share your card’s credentials with another person. Arguing on the topic of paying credit card bills more manageable than ever will be a foolish act. We all know it aches not only our pockets but also our heads.
Credit card companies lure customers with offers like purchase now and pay later. This statement attracts any customer in need of credit. Many smart & digital wallets are introduced in the market, but fraudsters/hackers always find a way to crack the code.
Therefore, while holding a credit card, never share your card’s credentials with a third-party unauthentic app or with any other person.
Conclusion: Increase your purchasing power but in a wiser manner. Correct credit card usage will help you get rid of your financial problems, but improper use can lead you towards a trap.