Welcome to
On Feet Nation
brown smith Online
rimeton454 Online
Harry Online
Meghna Kaur Online
Micheal Jorden Online
diane44kk Online
Jerry Online
Lura Online
Sagitta Marwa Online
Maria Online
xuanxuan geng Online
Linda Online
Posted by skin & hair care on March 19, 2024 at 5:04am 0 Comments 0 Likes
Used buses in Tamil Nadu are iconic of the state's bustling transportation network, catering to the diverse needs of its population. From the bustling streets of Chennai to the serene countryside of Coimbatore, used buses serve as essential pathways of mobility, connecting people across urban centres and rural areas alike.…
ContinueEveryone likes to buy the things they love and the temptation to buy them as soon as possible is the reason credit cards exist and are used by many middle- and high-class people all over the world. To match up with the latest trend people often couldn’t wait to save up the amount and would rather choose to pay that small amounts as EMI to have the product now. Not always this credit is used on personal expense many times a sudden need of money may arise due to medical or financial crisis and though it is advised to have an emergency fund, a credit card could turn out to be a blessing. One have to be very careful while spending on all those expenses firstly because it is not your money, it should be treated as a loan and have to be paid back and not to max out the limits when you can’t afford to pay it back before the deadlines and sooner or later find yourself in a debt and penalties which can degrade your financial records at a very early stage of your career.
Managing A Credit Card on A Low Income
A credit card not only is a way for you to have quick credit fast but also has many other merits it can be used as a report card of your debt management which you can show to your future lenders, In case you set out for a big loan to buy a car or a house in those situations, your lender would first like to you how easily and efficiently you can pay your dues. Though there are many more factors which imply when you apply for such loans but a good credit score will always leave a good impression and increase your chances remarkably.
So even if you have a low income or more having a credit card can be an amenity if used wisely, therefore, we will advise you in some points that will help you manage your credit card -:
As soon as you receive your credit card you also receive a certain responsibility, initially if your income is low your limits will also below according to what you earn but still you should understand your limits and spend according, try to avoid maxing out as much as you can and do only if it is a life emergency. You should keep your expense between 30% – 50% of the allotted amount so that you can easily pay your dues and have a good credit score. But things are easier said than done and often we see people giving up on their temptation. You can still be a little considerate and pay attention to little details before going all out like if your lender is flexible enough to let you pay the amount in EMIs or pay attention to the interest that is being charged on your credited amount.
To make people use more credit amounts companies often come up with various schemes on different aspects of purchases that can range from basic necessity to leisure. Though it often works as a tempting idea but by being a little smart you can make use of such deals and have significant savings. Many of the companies offer reward points that are awarded every time you make a transaction through the card. Many times, people don’t cash on such offers and are left out of amazing deals. Though on your low income try to avoid making huge purchases for a few credit rewards points rather than use it to pay other essential needs.
Which keeping a limit to your purchases is all good, paying your dues before deadlines is another important aspect of having a credit card. And here is where the troubles of having a credit card starts to appear for many but not for you if you have been following the previously advised steps. Before understanding why paying before a due date is important, firstly you have to know what is a due date. So, your lender has decided monthly that on a specific date you have you pay all the debt that you have used during the last month through a single payment. The reason it is important because if you miss it the company will be implied to penalize you with a small amount right of the start also it will charge huge interest on your debt which will make it even more difficult for you to pay back the borrowed amount piling up on your debts. Most people start to use another credit card to pay for the initial one and slowly get trapped in this vicious cycle which should be avoided at all costs, especially at a younger age.
Having bad management of money at any age is bad but what makes it even more difficult at a younger age is that it messes up with your credit score and in some cases, the company might blacklist you, what that means that now your financial report card has a huge blunder and might cause a bad impression on your future lenders especially going for bigger loans as explained earlier.
Interest is a factor that you should take into consideration before even going for a credit card, you must be fully aware of how much interest your lender imposes on you and how much of it you can handle with your current financial situation. Earlier in the stage when you have a low income you might have to settle for a higher interest and might now get those shine gold and platinum card, but as you climb up the ladder and you earning increases your limit will also increase and thus will drive those interest rate way low. Thus, make sure you sustain your growth and avoid making financial blunders.
We hope you might have learned a few ways to keep your money in check and make the best use of your credit card. Thus, increasing your chances for a better more financially stable life.
© 2024 Created by PH the vintage. Powered by
You need to be a member of On Feet Nation to add comments!
Join On Feet Nation