How to Use Credit Cards Wisely

How to Use Credit Cards Wisely

Credit cards are widely used today thanks to the numerous benefits they give their users. Many people make payments for their purchases, pay their bills and carry out other financial transactions using their credit cards. Besides being convenient to use, these cards are also reliable, fast and safe especially when they are properly utilised. However, there are some concerns regarding the use of credit cards which you have to take into consideration when making transactions with them. Apart from the possibility of increasing your debt when not properly used, it can also make you vulnerable to the activities of cyber criminals.

Choose your card brand wisely

Credit card is available in different brand names such as Visa, MasterCard, American Express and others. This is one fact that many people do not know. Each brand has their unique annual percentage rate (APR). It is the interest you are charged any month you didn’t make a complete payment. Another factor that you should take note of in this regard is the introductory rates. Some brands charge low introductory rate to attract consumers but after a short while, it is increased. It is important that you find out what the future charges are so that you will not be caught unawares. Avoid a brand that offers you high credit limit. In this way, you will not fall to the temptation of using more money than you can afford. Other fees to take note of are over the limit fees, cash advance fees, balance transfer fees, late payments and annual fees.

Don’t use credit cards in all sites

If you are making purchases with your credit cards, it is advisable that you shop or make transactions only on sites that you are sure of their reliability. Also you have to check if there is a program to check BIN on sites. Don’t give your credit details on websites that you are not sure of their reputation. Phishing is real and on the increase today. Many internet fraudsters have created fraudsters that even look like original as a means of defrauding unsuspecting masses. Also mind the websites you visit and what you download on your computers. Some programs come with malware that can trap your credit details as well as your passwords for important sites that you operate on and send to the criminals that own them. With the information they obtain in this fraudulent means, this criminals can even make purchases with your credit card without your authorizations.

Keep track of your monthly spending

Make sure that you have a record of all your spending and purchases you made with your credit cards. This will help you to know when your credit card has been used to pay for items without your authorization. Credit card criminals are wise. Thus, when they get the credit card details of a person, they do not make orders with high price tag. They purchase low cost items so that you will not suspect. If you are not careful, you will only suspect when it has become very late. But if you keep track of your purchases, you will be able to tell when unauthorized purchased is made with your card.