Credit Card Use Tips
Managing your own credit card use is a necessity. You shouldn’t just buy products without thinking about the financial risks. You need to be responsible enough to make use of your credit card as a way in enhancing your credit score and to escape plunging into a serious debt position. Utilize the following suggestions to make wise decisions.
Use the credit card that charges the lowest. Make sure that you are fully aware of the fee structure and completely cognizant of what it says in the fine print. Ask the issuer details on late charges and grace period. Educate yourself about the Annual Percentage Rate and learn the way to calculate it. Beware of card issuers that make big promises. If the promises are too good to be true, turn down the offer.
One or Two Credit Cards Are Enough
The more credit cards one has, the more tempting it is to purchase want. The more likely it is that he or she will fall into bankruptcy. Two credit cards will be fine, but if you can live with just one, the better. Too many credit cards can put to risk your credit score. Besides, terminating many card contracts at once can pull down your score significantly.
Pay Off the Balance Religiously
Each month, the target should be to pay off the balance. This may be a challenging target, but this is a way for you to save money. By constantly pulling down the credit figure, you will be able to keep the interest charges at their lowest. If it is possible, always set aside enough money to pay an amount that is greater than the minimum balance.
Use the Credit Card Only for Needs
Make it a habit to use your credit card only for needs. Do not carry the card everywhere you go because it is easy to get tempted feeling that you have the power to purchase. Stay away from shops where beautiful things are displayed. Go straight to your home after the day’s job. Consider simple living and think more about the family’s future.
Stand Firm against Cash Advances
You have the power to use the card to obtain cash. Do not feel so happy about this advantage. Instead, keep away from ATM machines. The moment you insert that card into an ATM, interest will accrue and you will be charged for the transaction. You may be charged a whopping $30 for every single cash withdrawal transaction. Always bring cash with you.
Keep an Eye on the Monthly Statement and Avoid Paying Late
Credit card issuers can be very hard on users who pay late. With a single instance of late payment, your issuer may just raise your interest rate and use this as a justification to report bad credit behavior. When the interest goes up, you will lose lots and lots of money that you have worked hard for.
Meticulously review your credit card monthly statements. Countercheck the present statement against the previous ones. For all you know, your issuer might be committing mistakes in favor of their business. Remember this: your issuer is out to make money. Enjoy the use of your credit card, but make sure you are not throwing money for nothing.