Credits card is basically one of the most commonly used financial tool in the world, because almost everyone has at least one or two. Credit card can actually be people's best friends, and at the same time, their worst enemy. To a child, it is like a magic card, because that is all you need in order for you to buy whatever your heart desires. If you don't know how to use it right, it can be pretty dangerous since it is like borrowing money to pay for your shoppings spree, without exactly having enough to pay for it. So here are a couple of do’s and don’ts when it comes to using your favorite financial tool.
DO’s
PAY FOR IT ON TIME
Credit card is technically debt, so it is ideal to actually pay for it on time, all the time. This is to keep
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It actually doesn't matter if it is your child, your parents, your spouse. Unless of course, you're a millionaire who doesn't really mind other people having a shopping spree with your credit card.
NO CASH ADVANCES
Cash advances is a big no when it comes to credit cards. This is because cash advance would unfortunately lead to higher interest rate, not just on your advance account, but also on your transaction fees. Also, it doesn't have a grace period, and that would mean, that from the moment you have gotten your cash advance, the interest would then begin.
LIVE BEYOND YOUR MEANS
Last, but probably the most important thing to remember when it comes to credit cards, is that you must live within your means. If you know that it will be difficult for you to pay for a certain item, that you don't really need, then what's the point of getting it in the first place? It is like fooling yourself, because overspending is never a good thing, and you know it. Credit cards are just a tool for you to use so that you could buy something that you could pay for later