How to Use a Credit Card Properly

Knowing how to use your credit card is a must for any credit card owner. We all have them; the good old plastic money. By following a-few basic guidelines, we can all ensure we are using our credit cards in a proper and responsible fashion.

They’re convenient, fast, easy, and the way of monetary transactions of the future. They come in all different colors. Some even come in different shapes or can have your family photo printed onto them, but the big question everyone is asking is, “How do we properly use a credit card?”

Well, it’s pretty easy; it only takes a few fundamental steps to ensure you’re using your credit card wisely. The number one thing when using your credit card is planning when and where you’re going to use it, which is absolutely essential. One of the biggest demons of credit card use is impulse buying, but this can be easily avoided by simply doing something like making a shopping list before you leave the house and sticking to it. It really is as easy as that.

The second step to using your credit card wisely is setting spending limits for yourself, budgeting the use of your credit card just like any other source of finance, and working your credit card into your household budget. This always helps to ensure you don’t get any unexpected accounts.

Thirdly, this next point pertains to fraud prevention. Whenever a shop assistant takes you card to swipe it through the EFT machine, always ensure they only swipe/insert it into one machine. If they insert it into more than one machine, continue the transaction, however, report the matter to the store management or police, as they could be using a card copying device. Also, make sure you advise the card issuer. Sometimes the card will tell the assistant “bad read,” so swiping or inserting the card into the same machine more than once isn’t a problem. It’s only if they expose your card to more than one machine, such as a small one in their pocket. This usually means that they are swiping/inserting your card the first time to pay for the transaction and the other time to copy it so they can get your credit card details and use if for fraudulent transactions.

When paying online, it’s always best to use a well-known credit card merchant when paying for items, such as PayPal. This will ensure your credit card details stay safe and don’t end up in the hands of fraudsters. It’s also comforting to know that both Visa and MasterCard have zero-customer liability programs for fraudulent transactions as long as you take reasonable precautions.

Now the practicals may seem basic, but how many times have you been held up in a department store because the person in front of you had a credit card wouldn’t work? This will help you ensure that you’re never in that situation. If you’re going to a retailer who swipes the magnetic strip on a credit card, always ensure the strip is clean. However, never put sticky tape on the strip, as this could cause the card to fail. Using glass cleaner is a good method of cleaning your card. Always remember that it’s easy to get a replacement card from you issuer. Always make sure you’re not close to your credit limit. If you are, take some backup cash just in case. If you swipe your card and it says “bad read,” try swiping from the bottom of the card reader up to the top. This is a retail secret that credit cards work best this way. If all else fails, ask the assistant for help. Then all you need to do is sign or put in your pin, and you’re done.

Finally, ensure you keep all your receipts because some card issuers offer deals such as extended warranty on good purchased using their credit card, so if you need to make a claim, you may need proof of purchase. Also, recepts are a good way to keep track of your credit card usage.

By following these few basic steps, you can ensure that you’re using your credit card properly, safety, and that you’re in control of your credit. A credit card is a necessity in today’s fast-paced ever-growing world and now you know the simple steps involved in using one properly.

Write to Julie Williams at julie@creditdonkey.com

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