When Not To Use A Credit Card

By | April 9, 2016

When Not To Use A Credit Card

Mr. Vikas went to Singapore for a holiday with his family. The trip was excellent and Mr. Vikas and his family had a splendid time. Until he returned home and got his Credit Card bill, that is. The gentleman was in for a nasty surprise. The trip had gone way over his budget and his Credit Card expenses were through the roof. Things were turning out to be a nightmare. All because Mr. Vikas had been unaware of the different charges that go hand in hand with Credit Cards. Had he been aware of the charges, he could have avoided using his Credit Card for every little thing, during his holiday abroad. But, it was too late and the damage was done.

If you are unaware of the different charges that your Credit Card can be subjected to, you too could find yourself in a similar situation. Now, we aren’t saying that Credit Cards aren’t good to have around, but there are certain scenarios in which care should be taken when using them.

When not to use your Credit Card

  • For cash withdrawals – Although Credit Cards give you the option to withdraw cash, it’s not an advisable thing to do. Cash withdrawn using your Credit Card incurs a high-interest rate and a transaction fee that’s charged separately for each transaction. Withdrawing cash using Credit Cards, should be your last option and should only be done in the case of an emergency.
  • Travelling abroad – Remember that using a Credit Card outside the country comes with a huge fee. Foreign transaction charges, foreign currency conversion fees, cash advance charges and other charges may increase the total cost of using a Credit Card abroad. Check with your bank and try to get an international Credit Card, in case you are travelling abroad. Go over the terms and conditions as well to make sure that you don’t end up paying extra.
  • Unsecured online transactions – Never use your Credit Card on websites with dubious names or addresses. You may just end up giving your card details to hackers. Always double check the safety level of the website while doing online transactions so that you don’t fall prey to a Credit Card fraud.
  • Swiping fees – You may come across certain sellers who charge a certain amount of transaction fee to swipe your Credit Card. Avoid using your card in such scenarios and pay cash instead. 

Tips on proper usage of cards

  • Never disclose your card pin to anyone or write it down anywhere. This is the most prevalent reason for frauds on card transactions.
  • Change your Credit Card pin from time-to-time. This ensures further security for your cards.
  • Change the online password for your Credit Cards periodically so that hackers do not get easy access to your information.
  • If your card is lost, inform the bank immediately and get it blocked. Do not wait or waste time, as it could lead to further problems.
  • Review your bank account and Credit Card statement from time-to-time. This could help you find out if your card has been misused or if any incorrect fees have been charged to your card.
  • Prevent your card from getting damaged, especially the magnetic strip. A cardholder pouch could help protect your card.

Credit Cards have become a big part of our lives. So, it’s important to know the proper usage of these cards, when to use them and just as important, when NOT to use you, Credit Card!

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