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Get a credit product that suits you
Ensure that the credit products you get are the ones that best suit your needs. |
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Understand the terms of the agreement before you accept a loan or credit card
If you don't understand the terms of agreement related to a loan or credit card, that is a sure sign that you should not take it up. Make sure you understand what is expected of you when you take on credit because once you sign up for it, it's your responsibility to make the repayments. |
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Save money each payday for emergencies
It is always prudent to set aside some of your salary as savings. As a general rule of thumb, it is best to set aside at least six months of your monthly salary for emergencies. |
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Set a monthly limit for charges and stick to it
Be disciplined about how much you want to charge each month on your credit card. Once you hit the limit that you have set for the month, don't use your credit card again until the following month. |
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Shop as carefully with credit as you do with cash
It is sometimes easy to forget that you have to repay your credit card charges when you go on a shopping spree. Be careful and don't overspend with your credit card. |
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Don't take on monthly credit payments unless you're certain you can meet them
Be aware of your debt-to-income ratio. Avoid going down the road where your monthly repayments put unwanted strain on your income stream. |
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Pay bills promptly and in full
If you don't pay in full, interest charges will start to apply. These interest charges have a tendency to keep growing. |
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Give your finances regular "check-ups"
Review your expenditure periodically to see how you can spend and save more wisely. Examine the areas of your life in which you are overspending, and find ways to cut back in those areas. |
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Keep credit card information (including the phone number of the issuer) in a safe place in case your cards are lost or stolen
This will enable you to call the relevant people to get your credit card cancelled as a precaution against it being used by someone else. |
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Review your loan or card statement when they arrive each month
This is a good habit because you can see what you have spent on and adjust your spending pattern if necessary to ensure you make prompt payment. |
What is Credit?
