Credit cards - Do's and Dont's

Used smartly, a credit card can be the answer to comfortable cash flows. If one pays back the amount you borrow before the monthly typical interest charge kicks in, you can neatly dodge interest charges. The amount of time it takes for the interest to be charged varies from card to card. Typically it ranges from 28 days to 56 days from the time one makes the spend.

Never pay a joining fee and the annual fee: There was a time when credit card companies were charging a joining fee and also were charging an annual service fee. Never ever accept to pay these and if you resist, the card companies will invariably waive them.

Pay off your credit card debt punctually: Always make payments on time, and pay all the outstanding and not just the minimum monthly amount. Paying the minimum balance only will mean years of paying off your credit card debt, and paying a total that far exceeds your original spend.

Keep track of all your repayments to be made:If you’ve accumulated debt across several cards, you may be finding it hard to keep track of all the repayments you need to make. Plus, if you’re only making minimum monthly repayments, you’re fighting a losing battle. The interest you accumulate could eventually treble the amount you originally borrowed, making it even harder to clear your debt.

Is a balance transfer from one card to other card right for you?: That’s where balance transfers can help. By transferring your debt onto a low interest credit card, you’ll cut the amount of interest you pay back. Plus, keeping track of your payments will be much easier.

Look out for a card that offers a low interest rate for the longest possible period:Get the best interest rate on credit cards Always opt for the card which levies the lowest interest for unpoad dues.