June 01, 2012

Credit Card Tips

Some people avoid credit card because they think that it is just a temptation. Somehow I agree because it is so easy to swipe the card but if you know how to use you card wisely, credit card can give you benefits. If you read my post about “How to Save in Using your Credit Card" then you will understand why I love having credit card.

I immediately applied for credit card when I got my first job maybe because I just want to feel that I’m no longer a student. But after two years, I applied for a new card and cancelled my first card because I want to take advantage the freebies like free shoes, watch and plane ticket.

If you are planning to apply for credit card, here are my credit card tips. 

1. Choose the right credit card

Always remember to choose the right credit card according to your needs or wants. Credit card companies offer different credit cards that you can choose from. If you love to shop, choose the card that offers cash rebates. If you love to travel, choose the card that offers travel insurance or miles. If you are a parent, you can choose a card that offers rebates in grocery or bills payment. 

After I got my first credit card, I always receive calls about pre-approved credit card. I accepted some of them but I also cancelled the card because I don’t want to pay annual fee for something that I’m not using. 

Now, I no longer accept pre-approved credit card because I’m happy with my current card. You don't need a lot of card, one or two credit cards will do. 

2. Be a good payer

Always be a good payer and be responsible in using your credit card if you don’t want to ruin your credit rating. 

When I resigned from work, I immediately called my credit card company to cancel my other card (I have two) and the CSR asked me why? I told them that I have no work as of the moment blah! blah! blah!. CSR told me that I can no longer use my credit cards because I have no work, just give them a call if I have a new job so they could unblock my card. 

At that moment, I hated myself for calling but I just told myself that I can apply for secured credit card. The following day, I received a call from the credit card company asking why I want to cancel my credit card and I told him the same thing but CSR told me that since I’m a good payer I can still use my card and he’s waiving the annual fee just don’t cancel the card. 

Credit card companies also waive annual fee if you are good payer. See what I mean, there are benefits for being a good payer. 

3. Pay your due

The most important thing is pay your due on time so you can comfortably sleep at night knowing that you have paid your debts. Do not pay the minimum due to avoid the interest. Do not use the card if you know that you cannot pay the amount in full. 

One thing that I don’t want to happen is to receive calls from debt collection agency or international debt collection agencies. It happened to me when my credit card was hacked

5 comments:

  1. oh my, i didn't know that they actually cut your cut when you are already unemployed?? rude credit card companies! that's the time when you need the credit card most! heheh :)

    ReplyDelete
    Replies
    1. Yes, you can use that for emergencies.

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  2. I always pay my credit card bill in full at the end of the month. That way, I never charge more than I can pay. I don't want to make the banks any richer by paying interest :)

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