Credit cards are have become invaluable these days and is a part of many transactions that we undertake.
However, there are times when we depend too much on this plastic card. It is always better to make the best use of debit and credit cards by using at the right time for the right reason.
As it is said that credit card can be a boon as well bane, if not used in a right manner. Using a credit card at wrong places can give you financial shock after receiving the bill.
Here are 6 Transaction you must avoid on your credit card.
1) To withdraw cash
A credit card provides us with an option to withdraw cash from an ATM. But, it is not suggested as it will attract high-interest rate on each transaction. It is not advised to use this option unless it is an emergency. Debit cards are best for withdrawing cash from ATM. Each time you withdraw there is a transaction charge and interest begins from the time of withdrawal, unlike other merchant transactions, which have a grace period.
2) Using Credit card abroad
Using your credit card abroad will attract a number of charges and fees such as currency conversion fee, foreign transaction fee, in such cases, it is better to avail international credit card.
3) When paying cash is more beneficial
Some times the product is offered at a low price if the payment is done by cash. In such cases better to shed out some cash and grab the offer.
4) Unsecured transactions
Avoid using your credit card if the site you are shopping is not secure. Hackers are masters in stealing information from such sites.
5) Nearing Credit Limit
Know and understand your credit limit as each credit card comes with a credit limit depending on the type of the card. Avoid using your card when you are about to reach your credit limit.
6) Fees involved
Some sellers charge fees for payments made through credit cards. Make sure you are not using such swipe machines where there is a charge involved.
Safety tips for secured transactions
- Avoid sharing your card information.
- Report loss of card immediately.
- Audit your bill- keep track of your purchases and charges
- Keep yourself updated on phishing scams
- verify the authentication of the site before making online payments