Dec.17: SPOTLIGHT
When you should not use your credit card
Credit cards might be convenient to use and a godsend at times when you don’t have the cash to cover unexpected expenses. But, there are some scenarios where using plastic is unwise. Find out which these scenarios are…
When a website address does not begin with ‘https’: Only when the URL begins with ‘https’, is the site secure. Also, do not use a credit card while using a public computer or when connected to public wifi.
When paying with cash can get you a better deal: Sometimes paying cash is better because the seller may offer a discount on a cash transaction or may charge extra for swiping your credit card. At a fair or local store paying with cash can give you room to negotiate the price.
When your card is taken out of your view during the payment process: This may give the person the chance to write down the details on your card or take a picture of the card for use later. Never let your card out of your sight.
When you are travelling abroad: There are foreign transaction fees associated with using credit cards overseas that can add 1-3% to each purchase.
When an online merchant has no reviews: If you Google them and no past experiences from other customers and no social media accounts show up, you should think twice about using your card.
If you are charging things that you used to pay cash for: That’s a red flag that you are getting overextended. You need to review your credit card statements and identify where the budget issues lie.
When you are close to your credit limit: If you go over the limit there might be a charge and the creditor can raise your interest rate.
When it is a case of recurring billing: This could prove to be headache if the biller continues to bill you even after you end your membership or subscription.
Finally, don’t use your credit card when you are depressed, upset, hungry or sleepy. You need to be alert and feeling your best in order to make rational informed buying decisions.
Sources: www.rd.com, www.creditcards.com, profit.ndtv.com
