How to and how not to use your Credit Card?

Despite the internet being flooded with great advice on how you should use the credits cards and rewards, it is unfortunate that most people do not seem to get the message.

Jan 22, 2016 04:01 IST India Infoline News Service

You have probable hear of someone talking about how they use their credit card and shook your head. Despite the internet being flooded with great advice on how you should use the credits cards and rewards, it is unfortunate that most people do not seem to get the message.
 
Of course, the reason why they seem not to be getting the message is that they are listening to that of their credit card companies. Since these companies are out to make profits off you hard earned cash, listening to their message can be misleading.
 
If you want to please your credit card company, go ahead a listen to their enticing messages. However, one thing you can be sure of is that you will be donating your credit score and at the same time burying yourself in debts. Here is how to and how not to use your credits card.
 
How to use
 
Big-Ticket Goods
 
Although it may sound a bit risky purchasing high priced good using your credit card, it is actually a smart way to go about it. The reasons behind this move is that credit card companied offer customer protection, which comes in when purchasing high priced goods. These security measures include fraud protection coupled with the ability to dispute the charge in case of an error. Other credit card companies will offer automatic extended warranties on such purchases. If you own a reward card, making high priced purchases can help boost your total rewards.
 
Travel
 
Most hotels use credit card for reservations. There are several merits for using your credit card to book your travel. However, ensure your card comes with secondary travel insurance cover. Some travel reward cards will offer bonuses for any travel related purchase you make.
 
How not to use
 
Student loan
 
Student loan is a big ticket item. However, big ticket items only work when the balance is to be paid off at the end of the month. Students’ loans are paid over time making credit cards to not be the best option. Even when considering student loan interest rates, they are still much lower that rates for your credit card.
 
Medical bills
 
We all know how overwhelming medical bills can be. Although credit card are sometimes the best option, always consult with the care health care provider for other payments plans that can help keep the cost lower. 

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