How to Use Credit Card Smartly

Don’t Miss Your Billing Cycle Deadlines

Have you ever missed your credit card bill deadline? You wouldn’t want to do that as it comes with substantial interest fees. If you’re a steady income earner, it’s advisable to set up a direct debit – this will automatically debit you and settle your credit card bills. With this idea, you don’t incur extra charges due to late payments.

Make Payments That Exceed the Minimum

If you use a credit card, it’s best to clear all debts once it’s time to pay up. However, there are times when you can’t afford to pay up at the end of a billing cycle. In such scenarios, do well to pay an amount that exceeds the minimum because paying just the minimum deals with the interests and not the balance. Take your time to analyze the previous month, each time, to check your minimum to pay more or twice if possible. When you follow this idea, you’ll pay off your balance without hassle.

Leverage on Credit Card Rewards

Different credit cards have their reward programs, and you can tap from any of these to reduce your bills. These reward programs can come as discounts on affiliated services or products, travel rewards, or cash back. In line with your personality and where you spend more, you can opt for a reward program that suits you best. Big travelers should go for travel rewards while shoppers go for rewards that offer discounts on affiliated products.

Keep Your Number of Cards Low

It could be fun and enticing to have many cards, but when you look at the managerial requirements and possible damage to your credit score, you just have to limit the number of cards you get. Don’t max out your cards if you ever keep some of them, as you risk your credit score. Do well to leave a balance within the range of 30% to 50% of the allowable spending, so your credit checks don’t appear bad.

Keep Your Accounts Open and Use the Cards

Before you get a card, be sure about your options and ensure that you’re ready to use it for a long time. Just so you know, about 15% of your credit score is determined by the age of the credit line. When a card has impressive payment history, its age adds to its positive score.Moreover, accounts can lose their influence when they appear inactive over time. Banks can close such accounts without charging fees for inactivity; this isn’t healthy for your credit score. What’s the catch? Keep your accounts open and make use of it once in a while, so it doesn’t go inactive.Emergency Credit Card-Emergencies come up at times, and if there be an urgent need of an unbudgeted expenditure, you can count on your emergency credit card. With an emergency credit card, you can tackle emergencies that appear to be out of your control. Be careful to know when you’re paying frivolities.    

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