Have you just received your credit card and wonder how to use it? Are you a beginner and looking for the best credit card tips to use it smartly? Welcome to the credit world! Using a credit card seems easy. Take it out from your wallet, swipe it on the merchant machine and walk away with the purchased goods. Using it on the Internet also sounds simple; enter your card expiry date, CVV number, and password; your transaction is done!
Yes, its usage is indeed simple and convenient. If used correctly, a credit card can change your life and can be a helping hand during your financial crunches. If used wrongly, then it can make you financially ill and adds more debt to your head. Also, there are various types of credit card frauds that you should be aware and avoid them smartly. We present here important do’s and don’ts for the credit card beginners.
Do’s for the Credit Card Usage
- Check seal of the credit card box that you have received from your bank. If found tempered then immediately call customer care of the bank. Get the card blocked and ask for the new one.
- Do remember your password and CVV number. It should be at your fingertips.
- Sign on the back of the card immediately.
- Put a small sticky chit on CVV number and expiry date area. Nobody will be able to know your CVV number and hence few chances of card fraud.
- Read the welcome kit properly. Know your credit card well. All important instructions are there related to various fees, offers, redeem points, terms and conditions, card member agreement, code of bank’s commitment to the customers, and more.
- Register your card with Verified by Visa (VbV) or Master Card Secure Code (MCSC) for safe online usage.
- Do update your mobile number, email and address with the bank or card company if you change them in future.
- If you see any unrecognised transaction in SMS or card statement, report it instantly to the bank.
- Transact only through the secured websites. If you find any abnormal activity then immediately block your card using the bank app or call to the customer care
- Store your card in a safe place in your home
- Always get your card swiped in front of you only
- Properly understand all types of credit card fees like annual fee, late fee, balance transfer fee, cash advance fee, finance charge, foreign transaction fee etc.
- Always pay credit card bill before the due date
- Try to pay full payment instead of minimum due payment
- Use the interest-free period smartly. Always try to purchase things just at the start of the interest-free period so that you get maximum time to repay the money.
- Check both offline and online offers for buying things on 0 % interest EMIs.
- Keep a close tab on your card usage. You can create a manual tracker or download a card purchase tracking app.
- Do check your credit statement thoroughly
- Always install a paid full version of a top antivirus in your mobile phone/laptop/desktop
- Do check your credit report
- Once expired, cut your card into 4 pieces and send it to the bank
- In case of card theft or you misplace the card, please immediately call to the customer care
Don’ts for the Credit Card Usage
- Never write password, CVV number and expiry details of your credit card on a paper or on a mobile phone/laptop/desktop.
- Don’t tell your credit card details to your friends, relatives, and family members.
- Never carry multiple credit cards
- Don’t be careless while the sales guy swipe your card
- Don’t use your credit card on porn, gaming, and lottery websites
- Don’t transact using an unsecured website
- Never click product offers present in the emails.
- Never fall to phishing scams.
- Never share any personal information like date of birth, address, card number or any other details on calls
- No bank or credit card company asks for your password. So you shouldn’t share it even when somebody comes to your place and says he/she is a bank representative
- Never share your transaction OTP number to anybody. Delete the OTP SMS/mail once you consume it
- Never entertain any product offer calls from the unauthorised people
- Don’t give your address proof, photo, and social security number to any person
- Don’t forget to pay your card bill by the due date
- Don’t accumulate debt by paying only minimum due amount every month
- Don’t convert all transactions into EMI. It may affect your credit score
- Don’t use office laptop/desktop or any internet café for carrying out online transactions
- Never cross your credit card’s limit
- Don’t take loan on your credit card
- Never purchase things unnecessarily.
- Never take cash advance using your credit card as it is very costly.
- Never apply for multiple credit cards
- Don’t throw away your credit card even if it has expired
- Never sign any blank paper if asked by the bank or an agent
- Don’t apply for add-on cards if you don’t need them
- Don’t close your credit cards so often. It may impact your score.
A credit card is a financial blessing if you know how to use it properly. Otherwise, it makes your financial life hell and there is no way to get rid of this mess. By properly using a credit card, you can increase your credit score and hence there would be more chances of home loan/personal loan approvals. Hence, for getting maximum benefits from your credit card, you should use it sensibly.
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