Top 5 Tips on How to Manage Your Credit Cards
Managing your credit appropriately is paramount to maintaining a good credit report. It will in turn enable you to achieve your goals by establishing your solvency. Bad finances will also bring you lots of trouble, big and small. So be responsible and you will find great joy in having a well managed life.
Here are some tips that can help you start managing your credit cards well!
1. Know your card
It spells convenience but it is also a risk. Many companies make money out of it, so better get to know your card fully before using them. Check for the fees so you will be able to avoid it. Annual fees, late charges, penalty and finance charges, know how to avoid them. Replacement cards and maxing out your credit limit will also cost you, so stay away from them. Cash advances also incur the highest interest rates so don’t use it like your ATM.
2. Don’t be blinded by minimum amount dues
When you look at your credit card statement you may be looking for that minimum amount due figure. But beware, it may be manageable but it can also be the start of trouble. Paying your debts in full will make it easier for you to manage your credit.
3. Do not overuse your credit card
Maxing out credit cards will definitely stain your credit report. Charge an amount that you can conveniently pay the next month. Once again, do not think about minimum amount dues.
Pay your debts promptly. Pay the total amount as soon as you receive your credit card statement. The right attitude about credit cards is to prepare and set apart a payment even before the statement arrives. Of course, you already know you have some debts to pay by the time you use that card, and do not procrastinate!
4. Keep a record of your cut-off date
You can keep a small note in your wallet on the different cut-off dates of your cards. This can help you decide which card to use. It will allow you to have enough time to pay for whatever you charge on your card. However, having enough time to pay your debts does not mean you can splurge on spending. It will only give you time but you still have to pay the full amount when its due date arrives.
5. Keep it simple
Use only one card. If you don’t want to get into the trouble of keeping track of payment and cut-off dates, use only one or two cards. It will be easier for you to manage your credit with fewer cards. Always keep your receipts. You will use it later to verify your purchases and in checking for errors and wrong charges to your account.
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