A Smart Way to Manage Credit Cards
Friday, November 16, 2018
Credit cards can be very convenient and useful if you know how to use them properly. Before charging everything on your credit card, it is helpful to learn how to manage the card. Many people get a credit card for easy access to spending money without realizing the negative effects it can have.
Learn why managing a credit card is important and how you can avoid any future problems. In this article, we’ll discuss all the ways you can manage your credit card and be a responsible credit card holder.
Ways to Manage a Credit Card
Make payments on time.
In order for you to have a great credit score and credit history, you must pay all your credit card bills on time. If you fail to repay the debt on time, it may harm your credit score and you will also be charged extra for late fees.
Maintain your credit rating.
Make sure to stay in your credit limit and try not to max out your credit cards to establish a good credit score. The higher your credit rating, the more options you have financially. To keep up with your current credit score, visit www.annualcreditreport.com for more information.
Track your expenses.
Another great way to manage your credit card is to track your spending. Review your monthly credit card statements to check if you are spending your money in the right places. You can also download apps to help you track and monitor your spending.
Make a budget.
Making a budget will help you understand your savings and expenses. It will help you know where you need to spend money and where to save it. Sticking to your budget will not only assist you in managing your finances and saving money, but it will also help you stay out of debt.
Find the right card.
There are many different credit cards available. Choosing the right card for you is worth the research. Choose a card that best suits your circumstances. The best option is to choose a credit card with the lowest interest rate and highest reward points. If possible, try to avoid getting a credit card that requires you to pay an annual fee.
Pay more than the minimum.
You can pay more than the minimum amount due when it comes to paying your credit card bills. This will not only help with your credit score but can also lead to the credit card limit being increased.
Limit how many you have.
The more credit cards you have, the more chances there are of you going into debt. If you apply for too many credit cards, it can hurt your credit score because potential lenders may assume that you rely too much on credit.
Avoid impulse buying.
If you don’t have enough funds in your savings account, try to avoid impulse buys. If you aren’t sure whether you can repay the credit card debt at the end of the month, try not to purchase things that you don’t really need.
Avoid cash advances.
You get charged higher interest on cash advances until you pay them back. There is also no grace period on cash advances, unlike regular credit card purchases. It's best to avoid doing a cash advance if possible.
Check your statements.
Make it a habit to review your credit card statements every month. Review your charges and make sure there aren’t any errors or fraudulent purchases. Keep your receipts to compare with your statement.
Know your chargeback rights.
You have chargeback rights when you make a purchase with a credit card. If anything goes wrong (you received a damaged item, the item being lost etc.), you can ask your provider to get your money back from where you purchased the item.