The number of credit card holders globally has risen steadily and will reach 1.25 billion people in 2023 (Shutterstock)

Credit cards have become an essential part of our lives, with people tending to avoid carrying money with them. Instead, more than a billion people in the world have one or more credit cards that they use on a daily basis in their lives, whether for shopping online, or paying travel tickets, Or paying monthly bills, or buying groceries from groceries and markets, and many other daily uses.

The number of credit card holders globally has risen steadily and reached 1.25 billion people in 2023, representing an annual growth rate of 2.79% from 1.1 billion in 2018, according to the Clearly Payments platform.

Credit cards have become an integral part of modern shopping and financing methods, providing convenience and flexibility to consumers around the world. Global revenues of the credit card market reached 152.2 billion US dollars in 2022, with a growth rate of 9.1% annually, according to the latest report issued by Custom Market Insights, and the total value is expected to reach 286.5 billion US dollars by 2032, which is It confirms the huge volume of credit card transactions around the world, according to what was reported by the famous British “Money” platform.

Three companies: Visa, UnionPay, and Mastercard control the global card market. Together, they account for 96.8% of the market, according to the Capital One Shopping platform.

Many people use credit cards unwisely, which exposes them to drowning in debt and paying high interest on these cards. For some, these cards are considered a new burden that haunts them in their worst dreams.

The amount of debt owed by credit card holders in the third quarter of 2023 reached $1.08 trillion in the United States alone (Shutterstock)

It is enough to know that the amount of debt owed by credit card holders in the third quarter of 2023 amounted to $1.08 trillion in the United States alone, according to the latest consumer debt data issued by the Federal Reserve Bank of New York.

Perhaps the most important question is how we deal with these cards intelligently in order to benefit from their many advantages, and reduce their many risks and negatives as well.

At Al Jazeera Net, we present to you 6 ways to use credit cards intelligently so that they become a blessing instead of a curse for their owner, according to what a number of specialized websites and platforms mentioned.

1- Establish a payment strategy and stick to it

The first step to using a credit card intelligently and wisely is to set a repayment plan and pay the dues as soon as possible, and not allow the accumulation of debt on the card with what this means of paying high monthly interest.

The best plan is to pay the dues on the card in full at the end of each month, and not just pay the permissible minimum, because paying the minimum means paying high interest on the remaining amounts due, and these are cumulative interests that increase every month.

This may seem easy and obvious, but many people fail to do so, and end up paying high interest rates on their outstanding and accumulated balances month after month. This means that you need to set a budget, and make sure that you can afford the monthly installments and payments before you start using the card. .

If you cannot pay the full amount you owe at the end of the month, you must at least commit to paying the minimum without delay, so that interest and debts do not accumulate on you, firstly, and secondly, so that your credit score is not affected in the long term.

2- Monitor your credit card monthly spending

You can fall into a debt trap if you do not pay attention to your spending, and here we advise you to carefully monitor the way you use this card, and not use it except in cases of necessity, and know that there is sufficient balance to pay what is due on time, and avoid excessive unnecessary spending on your credit card. Which you cannot repay later, and you end up paying high interest fees.

Tracking your credit card spending each month is an important step in understanding where your money goes, and how much you spend overall. Remember, interest will be charged on those previous outstanding balances, starting from the date of purchase.

Tracking your credit card spending each month is an important step in understanding where your money goes, and how much you spend overall (Getty)

In this context, many credit card issuers have online portals or mobile applications that help you track your transaction activity and purchases. This can help you detect instances of overspending, which you can correct. Ideally, your credit card balance should be less. From 50% of your credit limit.

3- Never use the card to withdraw cash

Many people treat the credit card as if it is an open bank from which they can withdraw at all times, and this is not absolutely true, as credit card debts are much more expensive than regular debts due to the high interest on the debts accumulated on them.

Here we advise you never to withdraw cash from the card, as the benefits of these withdrawals are very high, and higher than using the card for purchases. If you are in need of money, it is recommended to take out a personal loan with a lower interest rate, or borrow from a friend or family member if you can, but never use the card to withdraw money except in cases of extreme necessity only.

4- Do not set a high ceiling for your card

Many people believe that having a high credit limit on a card is one of its advantages, but the reality may be quite the opposite. Having a high balance on the card tempts many people to spend unaccountably, and here we advise you to adjust the credit limit on your card if it is high.

Ask your credit provider to set a reasonable card limit that will allow you to easily settle payments before the due date. Remember that a high credit limit may tempt you to overspend, while a limit that is too low can hinder important, high-cost transactions. Here it is important to determine The right credit limit for you; Failure to pay your credit card bills on time can negatively affect your credit score.

5- Benefit from rewards and benefits

Credit cards typically offer benefits and rewards that can be used to save money on a variety of expenses, whether that's cash back, instant discounts on the total bill, free airline miles, or discounts on purchases at specific stores and stores.

It is important to use cards on trusted and reputable websites or institutions, and be careful when sharing your credit card or personal data (European News Agency)

Here we advise you to understand the rewards program and the benefits inherent in your card as soon as you obtain it from the service provider, and use your credit card strategically to maximize these benefits, whether it is shopping during the holiday season, or end-of-year offers; Many e-commerce sites and retailers offer attractive offers on credit card purchases.

Remember that the benefits on your card can be great for saving money, but be careful not to spend randomly with the aim of accumulating reward points and taking advantage of benefits, as this can lead to overspending and getting you into debt.

6- Protect your card information

Finally, when using your credit card online or even in brick-and-mortar malls, protect your card details and personal information to prevent unauthorized use and potential fraud.

You should keep your card secure, use it only on trusted and reputable websites or institutions, be careful when sharing your credit card or personal details, check your card details regularly to avoid unauthorized transactions, and if such transactions occur, notify the issuer. Your card is reported immediately.

Source: Al Jazeera