What`s a golden rule? A golden rule is still a rule, but one that if it is followed, it will be only in your advantage! When it comes to credit cards, every tip and trick comes in really handy, because credit cards are a mined terrain! If you`re not careful where you’re stepping on, you might get hurt!
- Do not withdraw money from the ATM with your credit card!
Yes, we`ve mentioned that one before. And yes, we will keep mentioning it until it gets clear for everyone that most often than not withdrawing money from the ATM is an incautious action. Students have a lot of “needs”. At least they think they have, and because we have already undergone that experience, we must tell you a little piece of advice…all the things you think you`ve taken care of with some cash money will chase you the next month, when the statement will be knocking at your door (or at your parent`s door…ouch!) like crazy, overwhelmed by the huge interest rate! So when you`re standing in front of the ATM, with the credit card in one hand and a blouse that you intend buying, drop the blouse!!!
- Beware of the grace period!
All the banks and financial non-banking institutions have a grace period afferent to the credit cards. During the grace period, the bank does not charge any interest for the used credit, until the end of it, the client is reimbursed with the total spent amount and the taxes and commissions related to it.
Of course we have an easier to pay option, because we know that you are a student and you are sick and tired of complicated explanations. Here`s how to do things in a simpler and more efficient way: Every bank has a predetermined grace period and you should pay attention to it. Ask your bank which is the grace period, how many days are included in it and make a note on your personal calendar, writing down exactly what`s the period.
This feature can be very useful if you run out of money, if you need to do some shopping or pay some bills. Make sure to go to the cashier in time and return the money. Don`t even try cheating on that! You`ll end up being the cheated one!
- Refund more than the minimum settled amount
For credit card loans, the banks usually require the borrower to return a minimum amount each month of the amount borrowed (anywhere between 5-15%) and to pay fees, charges and interest, which come from money put first.
The more you reimburse, the less interest on borrowed money you will have to pay in the future. If the minimum amount is not repaid, the bank applies a very high penalty interest rate of approximately two times higher than standard interest.
Be sure that you`ve got this one covered. First, because your money will be saved and you won`t have to spend unnecessary amounts on huge interest rates, and second because taking care of this kind of aspects will build you as a grown-up, mature and responsible person. And we all want that, don`t we?
- Credit cards cost moneyeven if we do not usethem…
Credit cards are nowadays indispensable. They are an easier way to pay on everything and take care of your expenses at the end of the month. But, you should also know that credit cards are an expense even if we don`t use it that much. Here`s how and why!
Credit cards have an administration fee, annual or monthly, higher than the one available for the debit cards. So if you still have or want to acquire a credit card to use when going shopping or in critical times at the University quickly put the money back.Another great advantage of credit cards is purchasing products in installments without interest, when promotions with retailers or banks are available. Attention, monthly rates are distinct from the minimum amount to be reimbursed and must be paid separately at the time.
- Do not get yourself several credit cards!
If you know yourself as being an oddball, a spender or with havingan unstable income, the last thing you need is another card in your wallet! Do not be tempted by all those bonuses or promotional interests. Ask yourself: do you really need to have an extra care and temptation?Credit cards are useful tools for loan and payment. Unfortunately their simplicity has two cutting edges and a high cost. If you start your student life with two credit cards, and therefore, two loans, what is going to happen next, when you will need to build a house, a business and a whole life? You can`t just start your life relying only on loans! Credit cards are supposed to be used in unusual circumstances, when you really need some money and there isn`t elsewhere to get that money from. Keep that in mind and everything will get simpler and relaxed!
- Be careful about all the bonuses out there!
Some cards are offering extra points or bonuses for certain expenses. Do not be fooled! If you have enough money not to risk anything, go shopping!
But here`s the following scenario: let’s say that you buy clothes summing a few hundred bucks, animated by the 2% reduction offered by the bank. If at the end of the month you will not be able to not pay the rate, the interest that you will pay the bank will be much higher (at least ten times) than the bonus. You know what they say: In life everything costs! Not if you follow our rules though….