Hello friends, how are you all?? Wishing you all happy and prosperous life ahead..
Credit card has become a necessity for all of us, may many of us do not use the credit card balance, but for show off, everyone has atleast credit card. For most of us Credit card has become our habit. Credit card helps in Monthly expenses when we goes out of money waiting for our salary ,it is also convenient to track our expenses. we should always take only that credit card which can give us more offers and rewards and can save our money.
The bank gives us a lot of greed and tells us a lot of benefits from the credit card but we should always use our mind and think Before opting your credit card , Today i would like to discuss mistakes we should avoid When choosing the credit card.
Ignoring your spending Habits
The biggest mistake a person makes is when he does not know his spending habits, This should always be kept in mind while taking credit card. If the credit card is paying our bill today then you have pay it tomorrow. Otherwise we have to pay a Big amount of interest. Credit cards offer Various rewards, We should look at the expenses of the last few months. Because there are many credit cards which offer dining, luxury food, lounge at Airports, fuel, traveling etc. So select your credit card wisely that aligns with your spending habits to maximize your rewards and offers.
Less Annual Fee
Many people do not know that credit cards charge annual fees. We become so happy with credit card offers and rewards that we forget to charge the annual fee. Before taking a credit card, should what % of annual fee will credit card charge.
Overlooking Rate Of Interest of Delay payment
Credit card interest rate is high depending on the different banks when doing the late payment. Many of the people ignore to know the rate of interest, focusing solely on rewards and offers. So choose the credit card which has lower rate of interest.
Manage your credit
Before taking a credit card, know how to use it well,Always keep some important things in mind and write them somewhere in your diary, what will be your payment date and due date? Because if you forget to make payment by due date even once, you will have to pay huge penalty. And one very important thing,And we should always maintain the credit card score, otherwise once our reputation gets spoiled, we will face difficulty in taking loan in future.
Neglecting the security
In the digital world, credit cards frauds and identity theft are to be concern first. Always choose crdit card of reputed bank, go with advance features of it like EMV chip technology, two factor authentication for online transaction etc.
What is my own opinion? For credit card sake, I usually do it only when there are offers on it,I don't use credit cards for unnecessary shopping. In my language there is famous Proverb Jitni chaddar ho Utane perr Philana chahiye (Limit your expenses According to earning), If today we are buying something which is over budget and paying through credit card, then tomorrow I have to repay the loan from our own resources. Why have stuff that will get us into trouble in future?
Thankyou 😃
@gargi 🇮🇳🙏🏻
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