Make judicious use of credit facilities


Taking a loan or using a credit card has become an almost unavoidable practice in our lives due to its convenience and availability in our financial system. These credit options allow us to buy something that we need or want today and pay for them at a later date. Electricity or phone services are also credits as we are paying for their services later, but these are safe credits. Options like credit cards are a concern and we must be very careful while using them.

1. Proper use of credit facilities

A credit facility allows you to get instant benefits and gratification of wants, but you will have to pay its price later. These costs may get magnified if interest costs and late payment fees get attached to them. Credit facilities must be handled carefully so that they do not end up hampering your financial plans. Always make sure that you get more benefits than the price you are paying for via credit facility.

There are great advantages of credit facilities. A credit card is a big help for people who do not wish to carry cash all the time. Credit cards also help in emergencies such as sudden hospitaliation or travel where huge funds are required at a short notice. With credit cards, you do not need to worry about the immediate arrangement of the required funds.

Several stores offer 5-10% money back schemes on purchases made with credit cards. also, when you make purchases, you get points added to your account which you can redeem later to make other purchases.

Credit cards can be used where you have to pay big amount of money. With technological advances, credit cards can be used on several occasions such as purchase of goods and services, payment of bills etc. However, you need to be cautious with your usage as, with credit cards, one tends to overspend.

If you have a handsome credit limit, you must be more even more careful. A high credit limit makes people spend unnecessarily.

2. Managing credit rating

  • You need to have an impressive credit history and score when you approach banks for a loan or other credit facilities.
  • You must remain disciplined and timely in your payments in order to maintain a good credit score.
  • Never miss a credit card payment. Paying late will harm your credit score.
  • Keep an eye on your credit score and ensure that it remains stable.
  • Limit the number of your credit cards to a maximum of two.
  • Never use the card when you can pay with cash.
  • Ensure you do not go overboard with your expenditure simply because you have a good credit limit on your card.


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