Credit cards have been around for a while now and even today there is a fierce argument regarding the benefits and demerits of having a credit card. I feel that they are a luxury which we can do without, and despite all the talk about emergencies, most people manage without one well enough. Credit cards are available in various forms such as diner’s cards, shopper’s cards, and other charge cards. Whatever they are, you should be careful how you use them. Here are some tips which might guide you. To apply for a credit card you must have a reasonable credit history too.
What You Should Do
Always negotiate with the credit card provider regarding the interest rate. If you are a trustworthy customer the bank will fall at your feet every time. Squeeze as much as you can from the bank and ensure that they give you plenty of perks as well.
Always check for hidden costs and charges. The application form will contain all the details and you should possess a signed copy at all times. Read the form carefully before you sign it. Most credit cards have hidden costs and taxes. In case you feel that you are being swindled by the bank you will some proof to contest it. Most banks levy crippling interest rates and you should aware of the pro-rata rates as well.
Ensure that you limit your monthly spending to around thirty percent of your credit limit. This will provide you with some backup and your monthly payments will also be manageable. Use the credit card only when necessary.
What You Shouldn’t Do
Never use your credit card for daily expenses. Over the month the bills will mount up and end up in a big pile. Use your credit card only for large purchases which you can keep track of.
Never use your card to buy anything which is out of your reach. You will surely end up in a pile of debt this way. If you can’t afford it then don’t buy it. Never choose a card with a high credit limit even if the bank offers it.
There are many online credit card application forums. You can choose between several types of cards and each of them has individual features. The entire process is quite simple as well.