Do's and don'ts for credit cards

It is important to know how to use your credit card once you have received it from the card issuer. Below are some help hints that will guide you in using your credit card wisely.

Do's:

• Make sure that you let your credit card issuer know when you cannot make a payment on time. Most issuers are willing to help in these circumstances.
• Make good choices in buying products and services when using your credit card.
• Keep within 30%-40% within your credit limit as a certain degree of your credit score depends on the amount of debt on your credit card.
• Check your interest rate every so often to make sure you are getting the best deals from your card issuer.

Don'ts:

• Utilize a credit card to purchase everyday commodities, for example clothing and food.
• Use your credit card as a cash card to withdraw from ATM machines as this can lead to unnecessary debt.
• Pay minimum payments every month as you will end up with more debt as it increases your balance and the interest you pay. Always try to pay more than your minimum payment each month, this will help reduce your credit card balance
• Buy things with your credit card that you can’t afford.