10 things you should know about Credit Cards

#1. Use Credit Cards as a last resort.
Credit cards are one of the biggest culprits behind the economic turmoil in the west. Try and use cash or your checking account for all transactions.

#2.Pay off all credit cards each month.
Always try and pay off your balance in full each month. Balance carried forward to the next month brings with it an additional interest which never looks good on a statement.

#3. If you can't pay it off, pay as much as possible.
When life throws down the occasional googly your way paying off your card might not be an option. If you can't pay off the balance in one month, break it up into two installments. Pay as much as you can the first month, pay off the rest a month later.

#4.Never pay without cross checking your statement.
Credit card companies are known to make the occasional accounting slip up. Make sure they do not slip up at your expense. Always keep track of your transactions and match them with your statement.

#5.Know your Billing cycle
Knowing your billing cycle helps you plan major purchases along the way. The best time to use a card is the first week of the cycle.

#6.Be wary of EMI schemes.
With all major credit card companies offering easy installments on a variety of items ranging from Mobile phones to LED TV's it's easy to get stuck in the EMI rut. Make sure to never take more than two EMI's on your credit card.

#7.More than two credit cards never help.
Credit Card work on a principle of debt that outstrips your income. One card is a trap, two cards a snare and more than two a noose.

#8.Never miss the due date.
Missing the last payment date is an common affliction amongst the masses. Every due date missed comes back to haunt us with additional horrors like finance charges and late charges. Always keep a buffer while counting days and pay up in advance.

#9.Always be alert while using the card.
Every credit card user has a double charge story to tell. Many a times a card when swiped twice causes a lot of grief as a double charge. And lax storekeepers often charge it twice or charge it to the wrong bill. Keep your eyes on the price every time your card parts from your wallet.

#10.Never use credit cards for small charges.
Avoid using your credit card for small charges below
` 500. What appears as an insignificant amount alone, adds up to a nightmarish bill.