Credit Cards…what does it mean for you?

Everyone seems to want a Credit Card these days. My friend got refused for a credit card from a bank and he couldn't stop bawling over it. Why? What's so special about a credit card that you absolutely, positively must have one. No, two. Actually 5 is good enough.

Well, the convenience that credit cards bring into life is somewhat special. But like all good things, one has to use it cautiously. Just like fire- it can really help keep you warm, but it can also burn down your house. Same goes for credit cards. They can help you manage your finances better and make personal cash flows more efficient, but if used precariously, it can drown you into a pool of debts and you won't be able to surface.

They give you an extended period of one month to pay for purchases you have already made. So you don't have to use cash every time you go out shopping. Credit cards are also protected by a specific PIN number, without which you (or anyone else) cannot access your account. As long as you can keep paying a minimum amount from the entire bill, you can keep using your card. Obviously, this means that your balance keeps piling up if you don't clear it and before you realize it, you're a big pile of debt! So take care while using the card and don't buy excessively more than what you can actually afford!

While credit cards are extremely convenient to use and help manage finances better, their safety is cause of major concern. Just a few simple guidelines and we can make our credit card usage a lot more secure:

1) Never leave credit cards lying around.
2) Do NOT share your credit card number.
3) Never, ever disclose your PIN number.
4) Keep monthly statements filed away and locked up.
5) Shred any credit card related documents if you plan to trash them.

Just a few precautions and you safely enjoy the privileges of credit cards. After all, you must be responsible enough to handle important things!