Manage your credit cards effectively

Whoever said genies aren’t real? While they are no longer live in traditional magic lampts, they’ve moved to a smaller and more powerful house: the credit card. One swipe (you need to rub!) and you’ll get what you want. And unlike the old genies, the credit card will not ask you to trade your soul in exchange for three wishes – you just need to affix your signature.

This is the life most of us are living. We treat the credit card as the modern ay genie. This genie can give you the life you’ve been dreaming of, but on the other hand, it can also make your life miserable. If mismanaged, it can ruin you, your family and even your career.

With the help of my business partner Ramoncito Alba Flores, I will share tips on how to use your credit card and maxmize its numerous benefits.

Your credit card management style reflecrs your cash management approach. If you handle your cash right, you will do the same thing with the credit card. This means that if you have troubles handling cash, expect to have more of it with credit card. If you’re looking at a credit card to settle your debts, think twice and figure out long-term solutions.

For beginners, it is wise to maintain only one credit card account. Once you are confident about managing your credit card finances, then you can get another account that will give you more perks.

Choose your credit card wisely. There are several types of credit cards available. You can pick the most suitable card based on your requirements and financial situation. I highly recommend an account with annual membership charge. If you manage your accoutn dues well and have no outstanding balance at the end of the year, your annual fee can be waived.

Make wise decisions about purchasing items you need versus those you simply want. Using your credit card responsibly means recognizing which things you need and which you just want. Use your credit card to buy things you can afford. Living a borrowed lifestyle and using a credit card as a substitute for cash is the quickest way to get into debt. To purchase something is easy, but it is hard to pay higher interest rates on credit amount. For ordinary purchases, leave your credit card in your wallet and use cash or a debit card instead.

Zero percent deals are good, but only if you have the cash to pay for these items. If the lack of cash is your reason for availing of the deal, forget it. Don’t count your chicken if the eggs havey not yet hatched. If you have full control over your credit card only then can you start enjoying credit card deals and promos. You can charge most of your expenses to it.

Be in touch with your credit card company and pay your monthly dues on time to avoid interest. You should have also knowledge of the fes, extra charges and hidden factors of your credit card terms and conditions will help you manage your debt effectively.

Don’t get into the habit of making minimum-only payments. Making only the minimum payment month. –Jordan Willy Patente, Manila Bulletin