Credit cards can emerge as a boon when you don’t have money and if you have some urgent needs. When you have a credit card, you don’t need to rely on anyone else for money or financial help. Having your first credit card can lead to excitement and could tempt you to make even some unwanted purchases. As a result, it becomes a must to know some rules or steps to extract maximum benefits out of your credit card, a few of which are as follows -
Offers
First, check the required eligibility for the credit card which you want to apply for. As there are a number of credit cards available in the market, you need to check each of them individually not only for the eligibility but also the offers which are available with them. During your comparison, you should also check out the deals, interest rates, and annual charges. There is no single perfect credit card and as such, you should compare as many credit cards as possible.
Credit Limit
Most individuals who use a credit card for the first time tend to use it rather irresponsibly. They feel the high of their newfound freedom of being able to purchase things to their heart’s content using just a plastic card. In doing so they completely forget or rather overlook the fact that once the billing cycle ends, they have to repay back the amount of their purchase.
For this reason, it is best to opt for a credit card with a lower credit limit and see how well you are able to manage it. Once you get the hang of using a credit card, you can always ask the lender to increase the limit on your card.
Amount Payable
Most credit cards offer the option of paying the outspend amount in instalments. However, you should always avoid doing so because you can never predict what kind of expenses can crop up in the future. Further, once you do this, it starts becoming a habit until the time when your amount payable balloons to a quite considerable amount. In order to prevent yourself from falling into such kind of a debt trap, it is best to pay out the purchase amount by the due date in full.
