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10 Practices Of A Responsible Credit Card Holder
Credit is good, but only when it is
absolutely necessary. An irresponsibly used credit
card is a sure shot way of getting yourself into
a debt trap that is nearly impossible to get yourself
out of with out the help of a debt professional. So,
for those who feel that they have been adorned with
the privilege of being trusted with a credit card,
this could be a wake up call to stay out of debt.
Use Your Credit Card for Emergencies
Make it a rule to use your credit card only for emergencies.
You never know when you will need the credit facility
your card offers you. Though the card facilitates
you to buy something you would not normally be able
to buy with cash, you should try to pay some amount
of the bill through cash and the rest through your
credit card. This will make it easier for you to repay
the bill when it comes.
Don’t Use Your Entire
Credit Limit
Your credit card may offer you a limit that is ten
times your monthly salary. This is a temptation of
getting into a debt trap where you will be repaying
the interest most of the time. Try to use only 10
percent of the credit limit of the card. Do not over
spend unless you are sure you can spare the cash from
your next salary cheque. Don’t rush to use your
full credit limit.
Repay Maximum of the Debt You
Have Incurred
Make it a practice to repay the maximum of the debt
billed to you. Many people try to stick around the
minimum amount they have to pay, which is typically
10 percent of the bill amount. At this rate you will
take about six years to repay the debt if you keep
on using the card. Try to keep your credit card expense
limited to 10 – 20 percent of the credit limit
and repay as much as you can every month.
Keep Your Card At Home
If you find you are over spending try leaving your
credit card at home when you go out. Take it with
you when you feel you actually need to use it in an
emergency.
Do Not Give Out Your Security
Information to Anyone
Your security information is kept secret for a reason.
Do not give this information to anyone. Not even to
your best friend or credit card representative. This
information includes date of birth, PIN and security
questions.
Verify a Merchant Bill
Verify that the merchant outlet you have swiped your
card at has only swiped the card once. Else you will
be billed twice for the same transaction and will
be a hassle to undo.
Never Give Out Your CVV Code
to Anyone
Without your CVV code (the 3 digit number behind your
card) you cannot make any online transactions. Your
card number combined with this CVV number can be misused
by any one who knows both. So when using your card
at any outlet, ensure the attendant is not recording
the CVV behind your card.
Never Leave Your Card Unattended
Many credit cards are stolen from vehicles. SO never
leave your card anywhere out of sight including at
your work place.
Check If the Card Returned To
You Is Yours
Sometimes by mistake and at times deliberately, attendants
return redundant cards to customers and retain the
actual card for misuse. Check that the card returned
to you is yours – every time.
Report Lost Cards Immediately
Do not wait to report lost or stolen credit cards.
The damage might be much more than the nominal fee
for blocking your card.
If you are careful with your card the
above mentioned ten responsible actions regarding
your credit card can save you many headaches –
and a lot of money.
To apply for a credit card online visit
www.credit-card-offers.com.au
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