In this age of cashless and electronic transactions, spending money has become the easiest thing to do, but also probably the most dangerous as well. Our dependency on credit cards has become indispensable, yet it proves to be one of the most expensive means of spending, especially because we seem to spend what we don’t have. It is definitely tempting to swipe around the card and worry about the bills later But, when later does come, and we are somehow unable to pay off the credit, it sure does put us in a spot doesn’t it?

How can one make the best use of their credit card?

This basically means not falling into the treacherous debt trap which is the easiest thing to do when you live on credit. The simplest way to keep away from credit trouble would be to not use it at all. But, that’s not quite possible because: a) these convenient cards are useful in times of emergency, especially when you don’t have ready cash at your disposal. b) You get to avail attractive discounts and offers through your credit card. And these are only some of the advantages.

Most of us are very well aware of why we need credit cards, but not all of us care about making the most of it. Here are some simple tips to do just that:

1) Use your card only if you have no other option of spending. Typically during emergencies, when you need to make a sudden travel plan or some kind of medical mishap.

2) Choose a credit limit you can handle – if you think you might lose control every time you swipe your card, you can ensure you have a lower credit limit, much below what the bank allocates for you (based on your income).

3) Never delay or default on paying your credit card bill because not only will you end up paying high interest on every delay or due, your credit score will be negatively impacted as well.

4) You can in fact save a little bit with your credit card as well: how do you ask? Well, every time you swipe your card, there are reward points added to your account, which are redeemable. After you have lengthened a particular number of points, you can use it when you shop later.

5) Never reveal credit card related information such as your credit valuation (CVV) number, passwords, or your card number to unknown or untrusted sources.

6) Ensure that in the address bar, the link of the site starts with ‘https’ every time you fill in your card details on some website. This indicates a secured connection.

7) If there is an add-on card for yours, then it is your responsibility to pay off that bill as well. Remember, your credit score will be the one to be impacted even if you happen to default on the add-on card.

8) Never settle your card, this can cause you to be rejected by all banks during a loan application and on a permanent basis too.

Master the art of using a credit card wisely and you will be regarded well by all financial institutions in your future dealings whether its for a loan, or a credit card.