3 Things You Should Know About Your Credit Card
Credit cards are easy to use but not always easy to understand. But it is important to understand at least the basics of how your card works so you can make informed purchases.
As the saying goes: knowledge is power. And if you want the power to slash or even obliterate your credit card debt and how to use your card wisely, then you need knowledge about your credit card. There are three main things you need to know about your credit card (no matter what card you have), and they are:
- Your Due Date: This is the date that your monthly repayments are due. If you don’t at least know this much you better go and ring your bank right this second and find out. Otherwise you could be facing late payment penalty fees and/or overdrawn fees.
- Your Cycle Date: This is not the same as your Due Date above, it is the date each month that your statement cycle begins again. It is also the date that your interest free period begins on (if you have one with your credit card). This is important to know as the day after this date gives you the maximum time to be able to pay off anything you just bought during your interest free period. It’s a good idea to make any large purchases as closest to but after this date as possible so you have the longest period to be able to pay it off before any interest kicks in.
- Your Interest Rate: This may seem like a no-brainer but you would be surprised at how many people do not know what the interest rate on their credit card is.
There is much more fine detail to know about your credit card and how it works but this should get you started in the right direction to coming to terms with and finally paying off your credit card in full. Or, at the very least, not being slugged with unnecessary fees.
Image credit: ShutterCat7
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