My daughter got her first credit card and she was so excited having it but the credit limit given to her was 5,000php only. She tried using it in purchasing my maintenance meds for 1 month and some grocery items. She let me hold the card so that she will not be tempted to use it frequently.
Just this month, she got again a new credit card. Of course, just like the first time she was very happy and excited because the new credit card comes with a high credit limit of 36,000php. This time, she bought a new airconditioning unit using her 2nd credit card. The whole family is so happy because finally we enjoy sleeping at night and we are now comfortable during the hot weather. And then again, my daughter let me handle all the receipts of her purchases for the 2 credit cards so that I will be the one helping her on reminding the due dates of the payments.
Now this, I guide my daughter on how to properly handle her finances that she now have credit cards to use. There's nothing bad for having credit cards, what is bad is if you have bad debts because of your credit cards. As a credit card holder once, I know the risk of having it. You need to be a responsible credit card owner so that you could maintain a very good credit standing.
In this article, I would like to share some personal tips that might help you to manage your credit card or credit cards. The tips are based on my personal experience that helped me in managing my credit cards before.
Credit cards are good as cash, so you need to know your spending limits and paying capacity. Credit cards have credit limits, it is best not to use your credit limit to the max.
Do not spend using your credit card beyond your budget. This is where the problem starts. People use their credit cards without knowing that they are now getting out of their budget. They purchase things that are not on their budget list. Do not overspend using your credit card.
In paying, if you can pay all your purchases in full then that's good. If you can't, try paying not only the minimum amount of payment because the longer you defer your payment the more interests and surcharges will add up. And don't forget to pay ON TIME to avoid penalties for late payments.
If you think you are really a big spender, the safest way to do is leave your credit cards at home so that you will not be tempted to use it every now and then.
To end this, credit cards are of big help nowadays. It has now become a source of emergency fund. If you have one, use it wisely.