5 Rules to Use Credit Cards. Rules to use credit cards prudently.

5 Rules to Use Credit Cards

5 Rules to Use Credit Cards. Rules to use credit cards prudently.

Credit cards are a norm in the society today and it would be unfair to say that credit cards come without their benefits. They allow their carrier an effective way out of a rough financial situation. If you need cash for your utility bills and yet can’t seem to manage these bills because you are short on cash, credit cards help ease these financial stresses for you. Yet like most things in the financial world, credit cards are double edged swords. If they aren’t used wisely, they can prove to be a real menace for your financial picture in the long run.

Here, we give you 5 simple rules to use credit cards prudently.

1.     Keep Your Outstanding Balance To $0

Most interest companies in Australia tend to give you a few days after you’ve used your credit card to return the amount without charging an interest on the amount. This seems like a really nice offer and yet it’s only going to be valid if you are able to clear all your dues. It is important to note that if you miss your dues even for a single month, you are likely to face a huge interest rack up.

2.     Calculate Your Payments

Not calculating your credit card repayment and succumbing to the minimum payment trap is something that is quite commonly seen among credit card users. Most credit card statements urge you to pay 2% of the outstanding balance. While this may seem easy, couple that with 20% APR and a monthly interest charge of 1.7% and you’ll know that only a fraction of the amount you have paid as minimum will be actually deducted from the original spending. This means you’ll end up paying over 4 times the original amount spent on credit card repayment in most cases.

3.     Check Your Credit Card Payment

It has been seen that credit card statements can sometimes have mistakes that can be amounted to daylight robbery. It’s upon the credit card user to make sure these mistakes are pointed out and corrected. Sometimes, your transaction may be repeated or your expenses mentioned twice, which can cause an increase in the bill to be repaid.

4.     Talk To Your Credit Card Company

The rules of credit card companies and the interests they charge each customer aren’t set in stone. There are cases where people who have had a good credit history and are able to pay off their dues in time can contact the card companies and demand a change in the interest rate they are charged. You can talk to your credit card company and ask them to reward their valued customer.

5.     Always Pay On Time

This is one of the simplest rules that can be applied to using a credit card. If you pay on time, you will save yourself from the fusses of penalties and negative credit scores, etc. Plus, paying on time tends to give a better reputation to the customer in the eyes of the credit card company.

Follow these steps to make sure your credit card works only for your benefit.


Begin new trails instead of old paths


A Selection of Credit Quotes

“If you don’t have the money management skills yet, using a debit card will ensure you don’t overspend and rack up debt on a credit card.” ~T. Harv Eker

“Procrastination is like a credit card: it’s a lot of fun until you get the bill.” ~ Christopher Parker

 “When I was young I would spend more money than I should with my credit card but my father cut it off, so I had to find creative ways of making money.” ~ Carmen Busquets

“Make this the year you tackle that credit card debt once and for all.” ~ Suze Orman


"Procrastination is like a credit card: it's a lot of fun until you get the bill." ~ Christopher Parker