Credit cards can prove to be an extremely precious fiscal tool for unplanned charges, handling extremities, earning price points and just erecting a credit score. In our attempt to move towards a cashless frugality, plastic plutocrat similar as credit cards come an important tool for deals of all kinds ranging from everyday purchases to big ticket particulars. It goes without saying that one can only reap the full benefits of credit cards if they exercise fiscal responsibility in the process.
In this blog we deep dive into effects one can buy using a credit card, the process for the same, tips for first- time credit card druggies and some avoidable to keep in mind.
Effects you can pay and buy with a credit card
Multiple goods and services can be paid for or bought using a credit card. Still, there are several kinds of payments that can not be made using plastic plutocrat. In this section, we will deep dive into the deals that can be and can not be bought using credit cards.
What can you pay for using a credit card?
- Paying credit card with a credit card
It can be a tempting study to pay off a advanced interest credit card payment with a lower interest credit card, this still, isn’t admissible by fiscal institutions and credit card companies. They generally accept plutocrat orders, electronic plutocrat transfers or bank cheques to settle the due quantum.
And while direct payments from a credit card to settle the balance on another credit card isn’t possible, there’s an option to do a balance transfer to use a credit card for credit card payments. This basically means that one can transfer part or full quantum of credit card debt on another card. Dispensable to say, there’s a figure attached to the process.
- Paying levies
The option to pay levies using a credit card is available. One can pay the quantum due and get the acknowledgment for the same, nearly incontinently. The Government, in their attempt to encouragenon-cash deals, has given benefits to individualities making use of their cards.
- Paying rent
Rent makes up a major knob of our yearly expenditure. One can pay their rent using a credit card but needs to be cautious of some factors before taking the decision. You’ll earn some price points for making a payment using your credit card but there are certain charges that will be levied also in case of a missed payment, your credit score will take a megahit.
What can you buy using a credit card?
- Buying electronics
Credit cards not only help secure price points when you buy a big- ticket electronic item but also give insurance, generally in the form of extended bond.
- Trip charges
Credit card issuers frequently offer their guests colorful benefits similar as cancellation content, luggage insurance, medical content among others. Reserving your trip gests using a credit card allows cardholders to also earn price points and multiply the benefits they secure out of their credit card.
- Online purchases
Credit cards give insurance against fraudulent deals that might take place online, which is extremely handy in situations where your card details fall in the wrong hands.
Steps to pay online with a credit card
We can each agree that the process of online purchasing has been made significantly easier with the arrival of credit cards. The payment process with a credit card involves the following way that need to be followed in order to successfully complete a sale.
When you’re on the checkout runner of the said website, the below- mentioned pieces of information need to be handed
- Shipping address
Furnishing the shipping address helps the website to dissect the final shipping cost and later modernize the total purchase quantum. This address needs to be the one where you want the order to be packed, and it might be different from the billing address. Generally the option for colorful shipping types will be presented then.
- Choosing payment system
Choose a credit card as your mode of payment. Next, you’ll be given the option to choose which credit card you’re using – Visa, Mastercard and so on.
- Enter your credit card information
Enter your details in consonance with your credit card. Details similar as name on the card, credit card number, expiration date and security law will be needed.
- Billing address
This is the address where you admit all your credit card statements and might differ from the shipping address handed before.
Formerly all the required information is handed, you can elect the button to do. You’ll be taken to a verification window where you canre-check the information entered. After attesting that the information is accurate, you can successfully complete the order.
Buying effects online with a credit card
Credit cards have come one of the most popular mode of payment for online purchases, and there are colorful reasons that contribute to it
- EMI option
You can buy big ticket particulars without having to shell out a big quantum all at formerly. Credit cards allow us the option of converting our payments into EMIs which can be paid back over a span of time.
- Prices and credit structure
Credit cards come with the fresh perk of price points every time the card is used. One can redeem these price points for free trip tickets or purchases from stores the credit card has a tie up with. Also, when you repay the credit card pretenses on time, it helps produce a positive credit history hence perfecting your overall credit score.
- Fraud forestallment
Credit cards Give a lesser position of insurance against online fraud making it one of the most secure ways for online shopping. Both the credit card Leg and OTP on the registered mobile number is needed to complete the sale and hence, it ensures a binary position of security to the druggies.
Effects to avoid buying with a credit card
Indeed though credit card operation comes with a lot of advantages for the stoner, it’s important to understand that a credit card mustn’t be used for gratuitous charges or purchases you can not go to make, generally. Then are some of the particulars that must noway be put on a credit card
- Education loan
- Down payment for any product or service
- Paying for everyday particulars without a budget planned for the same
- Trying to buy products just to gain credit card prices wherever possible
- Medical bills.
Tips for first time credit card druggies
Your first credit card is the foundation of your unborn credit score, which makes it important to understand some way that will help you yield the maximum returns out of your credit card
Credit card isn’t an instrument you use to buy effects you ca n’t go. Only use your credit card to buy effects you can really pay off after a month. Keep a track of the purchases you make using your credit card.
- Automate payments
Schedule automatic payments for your credit card bill payments well before the due date, in order to avoid late payments. By automating the credit card payment online, one can also increase their credit score.
- Check your credit application rate
Don’t uttermost out your credit card limit. Immaculately, try not to surpass the limit of 30 of the total credit limit available at your end. Using further than 30 of your credit limit can drop your credit score.
- Check card statement regularly
Insure that there are no disagreement in your credit card statement by reviewing it at regular intervals. Check for crimes and illegal charges and also clarify these with the card issuer at the foremost.
Still, credit cards can prove to be an extremely salutary fiscal tool, If used right. It’s important to admit that bone doesn’t overspend due to easy access to the credit, these cards give. By living within our means, we can maximize on the versatility credit cards offer.