Nothing in the world is free and a credit card that presents itself to you as free is not actually what it might be. Credit cards are convenient items; they allow you to purchase products and having to pay for it later. However, if you fail to manage your credit card bills properly, you can find yourself in a world of debt. Consider the following to ensure that you can make proper use of your credit cards in the best way possible.
One thing people know about credit cards is that they help you get financing and discounts for items that you can purchase, but you’ll need to know more than that. Sometimes, credit cards come with PPI. They are named differently but ultimately, they are all similar. If you can’t comply with the PPI’s terms, you are in trouble of repaying items you can’t actually make use of.
Financial advisers might also tell you the PPI is a free product because of your high credit score. Again, read the terms and conditions. Selling it as “free” is something that allows financial advisers to get away with mis selling you such insurance products. You wouldn’t want the hassle of having to use a PPI calculator to track your mis sold repayments in the future, right?
Credit cards usually have a 3.5 to 4.0% interest on its outstanding balance, so be sure to repay your bills in full per month to keep the card “free”. Even if the minimum amount is quite a tempting offer, resist it and pay in full. Your finances will surely suffer a lot by the end of the year if you keep on paying your card’s minimum fee.
Keeping track of all the items you’ve purchased using your card is important. Be sure to note them down all in a notebook. Take note of your credit limit. It is bad practice to continue spending with your card until you hit your limit.