Question

What recommendations would you make in regards to properly managing credit card usage and repayment?

Answer 1

Following recommendations will help in managing credit card usage and repayment

1. The credit card statement should be updated and checked regularly.
2. Credit limit should be chosen wisely based on the repayment capacity.
3. Payment of credit card bills should be done within the stipulated to avoid excess interest charge or late fee charge.
4. Withdrwal of cash with credit card should be avoided as unlike debit card the cash withdrawal carries interest.
5. Timely repayment of credit card bills is important as it affects the credit rating of the user