(ThyBlackMan.com) Credit cards are no more a luxury today- rather these plastic cards are getting increasingly indispensable day by day. The most important benefit of the card is the security of cashless transactions, saving you from carrying sizeable cash in your bag for a lump sum purchase. However, credit card is also one of the reasons of increasing debt today. But again, that doesn’t mean that you would have to abandon the plastic cards completely. You can reap the benefits of credit cards and be not in strangling credit card debt if you follow the tips below.
Search around for the most compatible one
There are scores of credit cards in the market but not all of them would be compatible for you. So, you have to search around and take a comparative study on at least 4-5 credit cards prior to choosing your final one. Consider you needs for the credit card before the selection. For example, if you are looking to use the card just for big purchases and not for your regular shopping needs- a card with low
interest would be great for you. Again, if you are particular enough to pay the complete balance each month, a rewards plastic card would be the right thing for you.
Make sure to go through terms & conditions attached with the cards prior to finalization.
Get the credit report
Do you know a great proportion of outrageous credit card debt happens due to identity theft? Well, yes and you have to be watchful about it. Mysterious line of items on your credit report implies that you have been a victim of identity theft. This is why you should keep a regular check on your credit report. You have the benefit of getting free of cost credit reports as per the federal law and you must make a full utilization of that benefit. A regular check will help you to compare your expenses with those items on the list & you will get alert immediately if there is any discrepancy.
Take note of ancillary benefits
A lot of credit cards extend ancillary benefits such as price protection, extended warranties, trip cancellation, purchase protection & even auto insurance. Now, these benefits would be useful when you are planning a trip or out shopping. So, before you take to a credit card, always go through the perks offered by it. If it is not offering any meaningful benefit, despite a good score, you should look elsewhere.
Be careful about credit card security
Issuers would be providing EMV chip cards soon that are tougher to counterfeit compared to conventional magnetic stripe credit cards. However, you can do your own bit as well to ensure complete security for your credit card. Things that you can do here are regular monitor of financial statement, setting up of alerts for immediate spotting of suspicious charges, keeping the phone locked always etc. Also, do not throw the paper statements right on trash. Always tear them to pieces before throwing.
However, don’t hesitate to take to debt management programs if you actually find yourself in outrageous credit card debt.
Staff Writer; George King