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01 September 2011

Precautions for Using Credit Card


Using credit card is the easiest way to make purchases or money dealing with very less risk. But still there are a few precautions that need to be taken during its use.
1) Always keep your financial record clear and be aware of the amount deposited in your bank.
2) Use it only from reputed institutions and shops as some people may hack your credit card account and make purchases.
3) Try to be in front of the card swipe machine to minimize risk of misuse of the credit card. Some cases have been reported about failure of the machine leading to multiple swipes. Some times instead of a single swipe repeated swipes by the person on the machine can transfer repeated entries in the machine.. Remember you will be charged for this amount . But later on complaining with the respective bank or financial institution you can rectify the error.
4) Using multiple cards is also easy but always keep account of each entry at the end of every month to keep a watch on expenses.
5) Money used by credit card is only available free of interest for certain period. After this the financial institution or bank will charge you with interest along with the principle amount. This varies from institution to institution. Some have 0% interest for a month and some may also give time period of 3 months for repayment without charging any interest on the amount spent.
6) Always remember that the money spent has to be repaid and all this comes at the end of every month in the credit card statements. You can assess your spending habits and reduce the use of card as sometimes this leads to overspending and impulsive buying.
Precautions are necessary before using the credit card and also with every use of the card. Talk about the best deals and offers on credit cards and learn more about security measures related to the use of credit cards.

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