5 Rules for First Credit Card UsersAre you excited about your first credit card? Now it is the time to learn these 5 important rules for first time user.
Rule One: Pay off Balance Every Month The cheapest way to manage your card is to pay off your balance every month. The bank normally offers interest free period from 40 days to 55 days. If you pay off the balance every month, you will incur no interest charges. To make things easier, you can set up a direct debit from your bank account to pay off the outstanding balance on due date. Alternatively, you can set up a fixed amount every week to pay some balance off to avoid late fees. If you can't trust yourself, only use the card in emergencies.
Rule Two: Avoid Cash Advances You will be charged on higher interest rate immediately if you withdraw cash from your card. You will only receive interest free period by using card to buy something. It is a very expensive way to get cash. If you need to access cash for an overseas trip, deposit money into your card and there is not interest charged as you are using your own money.
Rule Three: Apply for Disputed Transactions If you don't receive anything you have purchased or you are not happy with the product or service, you can apply for refund through your credit card provider. This is part of the conditions imposed by card companies on all traders. You should contact your card provider as soon as possible about the claim.
Rule Four: Report Lost or Stolen Cards Immediately If you lost your card or the card is stolen, you need to contact your provider immediately to suspense it to avoid fraud. Never provide card number to anyone else.
Rule Five:Seek Help If you find you can't control the credit card debt, take serious and prompt action. You should stop using the card immediately. Then you should talk to your bank about restructuring the outstanding balance. One possible option is to set up automatic payment to pay it off. Another possible option is to have a consolidation loan or add into your mortgage.
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