The Ultimate Guide to Using Your Credit Card for Everything

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Depending on how you use your credit card, a credit card is a huge blessing or a huge burden. It can help you achieve your financial goals or destroy your plans; it totally depends on you.  

If used responsibly and actively, a credit card can help you build a strong credit score. And, a good credit score means your eligibility to new credit cards and a low-interest rate on loan. Apart from this, the benefits of using a credit card multiple if you own a reward credit card. You can collect hundreds of Dirham in cash rewards, points or miles when you use the credit cards for all your monthly purchases. Moreover, the best credit cards also offer purchase protection to cover your the theft and damage of your product. 

Not just this, using a credit card means you have a right to dispute the billing errors in credit card. You may raise your concern in writing and ask to withhold the payment for the total amount you have disputed till the credit card issuer investigates. This is not possible if you use a debit card. 

This gives a clear idea about why you must use a credit card. So, here’s an article that will you guide you on how to use a credit card for everything. Check this out: 

Using more than one credit card is a ‘NO’.

Paying for all monthly expenses with a credit card is a good decision, but only till the time you use one and only one credit card. This is because using multiple credit cards to pay for monthly expenses makes it difficult to keep a record of your transactions. With this, you may end up with overspending. 

Moreover, if you own a reward credit card, your reward points will be distributed amongst different cards, thereby making it difficult while claiming those rewards. 

Making partial bill payments is a ‘NO’.

Even though credit card providers allow their consumers to pay a minimum partial payment, you should always pay full billed amounts. Every time you make a partial payment, you pay only a part of the interest, thereby increasing your credit utilization by each month. This, in turn, can put you in never-ending debt. Moreover, it will also create a negative impact on your credit score. 

Paying a credit card with another credit card is a ‘NO’.

Yes, you have multiple credit cards, but we advised you to use just one. You can’t you another credit card to pay for one card. If you do so, the chain will continue, the limit of all cards will be exhausted and you will be trapped in never-ending debt. 

Going beyond your credit limit is a ‘NO’.

When using your credit card for everything, make sure that your credit limit is large enough as going beyond the limit will get you over-limit charges. Even if you manage the stay within the limits, you should avoid spending more than 50% of your credit limit. It can affect your credit score.

In case your credit limit is not that large, you should continue using your card responsibly and making timely and full bill payments. Doing so will help you increase your credit limit over the time. Alternatively, you may also make payments towards your credit card in between the billing cycle to free up your credit limit so that you can continue enjoying your card. 

Needless to say, even though you have a huge credit limit, your spending should never go beyond your income. 

Taking out your debit card occasionally is a ‘NO’.

When you have decided to use your credit card for all your monthly expenses, taking out your debit card in rotation won’t be a good idea. This is because when you use your debit card to make payments your account balance decreases, thereby making it difficult to pay for the credit card. This ultimately can lead you to a debt trap. 

And there’s a ‘NO’ to paying additional credit card fee.

In most cases, you can pay through your credit card without being charged for an additional fee. However, some companies don’t allow this. They may charge some percent of your purchase as an additional fee for using a credit card. In case you purchase is liable to such fee it is advised to pay via a debit card. 

Bonus Tip 

While you will follow all of the above -mentioned tips, the key to make them work is self-discipline. Just because you own a credit card, you can’t make big purchases to your heart’s content. You need to have a strong control over your temptations. Even though you own a credit card you still need to make a budget, differentiate between ‘wants’ and ‘needs’ and spend only for reasonable things.

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