When you decide to have a credit card, keep in your mind one thing "you replaced the cash with this plastic card" & don’t ever think of it as a long or short term loan or you will end up paying the interest while the principle amount is not reducing
So if you want to buy anything & you want to pay over a period of time lets say one year it’s much better to apply for a loan than using your credit card because the loan interest rate what ever it was will be less than the credit card interest rate. When using your credit card lets say for example the interest rate is 1.5% per month which means 18% per year while the loan interest rate where ever you are will never reach 18%
Another important point, always pay the full amount on or before due date but not after it to avoid two things:-
· The late payment charges
· The interest rate. By doing so you will pay only the amount you used during the month without interests & charges. This is not applicable for cash withdraw from ATMs because the bank will start calculating the interest from the next working day