There’s a right way to manage a credit card

A credit card offers a great deal of financial freedom – but it can be equally financially risky if not managed correctly.

If you handle it well, you can access a number of special privileges and even gain points on your credit score. On the other hand, missing out on just a few payments can make the outstanding balance balloon out of control very quickly – and negatively affect your credit score!

• Being aware is being smart

When you use a credit card, you are effectively taking a loan – and as with any complex financial instrument, it is essential to know what you are getting into. 

Read the cardholder agreement. Make sure you understand the terms, as the agreement explains all applicable fees and charges.   

Understand your grace period. The grace period is a window; if you fail to pay your dues in time, you may be charged interest on the amount.

• Read the cardholder agreement

Make sure you understand the terms, as the agreement explains all applicable fees and charges.

• Understand your grace period

The grace period is a window; if you fail to pay your dues in time, you may be charged interest on the amount.

• Don’t use it if you don’t need it

Credit cards may feel like “easy money”; but be very sure you both need and can afford every purchase. 

• Pay off as much as you can

Keep your credit card balance as low as possible. Have a disciplined plan to repay your card balance each month. 

• Beware of cash advances

Do not use your credit card to withdraw money, unless it is absolutely necessary. You may be charged a higher interest rate.

• Never ignore rising credit card debt

If you feel your credit card debt is rising uncomfortably, contact your bank as early as possible to work a way out.

• 8 ways to be safer than sorry

 It is critical to be alert for any indication of fraud on your credit card. The following are some useful tips:

1. 1. 1. 1. 1. 1. Sign up for Email and SMS transaction notifications for your credit card.
               2. Report a lost or stolen credit card immediately. 
               3. Have the Customer Service Number of the credit card close noted down. 
               4. Try to not let your credit card out of sight while making payments.
               5. Do not give out your credit card number via email or over the phone without a valid reason. 
               6. Take your credit card back after the purchase and confirm the amount on the receipt.
               7. Contact your credit card issuer if you see a charge on your statement you don’t recognize.
               8. To ensure online payments are safe, look for secure transaction symbol.