There are Smart Ways to use your credit card in an easier way to make purchases conveniently at any time. But these conveniences come with a cost, avoid costly fees and interest rate that follows with a credit card. The most credit card comes with perks, many that you might not be aware of. However, knowing how to use your cards not only allow you to avoid expensive debt but also build your credit card history. To know how to use your credit card in a smart way, here are a few tips;
Smart Ways To Use Your Credit Card: Pay Your Credit Card fee on time
When you receive your credit card statement, check the date the payment is due, and ensure that you make payment promptly. Also, this will enable you to avoid extra interest charges or hefty late payment fees. However to make it easier for you to make payments on time, consider setting up a direct debit or autopay to pay a fixed monthly amount off the balance owing each payday. Just make sure these payments cover at least the minimum monthly payment due on your card.
Maximize Your Credit Card Repayment
However, if you are having issues with paying more than the minimum monthly repayment, switch to a credit card with a low-interest rate and pay off more than you can. Also, after switching, make sure that you close your old credit card so that you don’t close your account with a balance. Clear off old card balance before going for the new card.
Set A Good Credit Limit
Always set up a sensible credit limit, it should be an amount you are able to repay each month, an amount that won’t tempt you to overspend. To avoid overspending, ask your creditors to reduce your credit limit. You can also ask your card issuer to increase your credit limit at any time. If you want to increase the limit to make any special purchase, you’ll have to aim at putting the debt down quickly, then lower back your limits back to a manageable amount. If you can’t afford to repay your account balance each month, don’t increase your credit limit. A higher credit limit makes more likely easy for you to be in huge debt.
Track Your Spending
It can be very easy to gather up more debt on your credit card than you can actually repay. Then, you have to stay in control of how you make spending on your card. The unique way to control your spending and keep track of your spending. Watch your spending daily, write down a to-buy list, putting down what you actually need at the limit of your card. Also, manage your expenses and ensure that you check your credit card statement regularly
Smart Ways To Use Your Credit Card: Wisely Use Store Cards
Generally, Store cards can be so tempting to have especially when you are a regular shopper at that particular store. However, Store cards come with rewards points, discounts or other exclusive offers. Therefore, purchase made with these cards attracts these rewards points and discounts. However, always think twice before you sign up for store cards, as there are embedded inside the card fees, (annual and service fees), and the interest rate might be higher than other retail cards or bank cards.
However, always check the terms and conditions of store cards carefully to make sure any savings you might earn won’t be swollen up by fees and charges.
Check Your Credit Card Billing Statement
Also, the simplest way to check your monthly statement is to keep all of your credit card receipts each month. Then always tick them off against the charges on your statement. This will allow you to check if you have been charged with the right amount for your purchases. And that there is no additional charge for anything you did not purchase.
Additionally, Check out for charges by companies you do not recognize, large or unusual charges, changes in direct debit amounts and duplicate charges. If any transactions you didn’t make is seen on your credit card billing statement contact your card issuers immediately for any reversal.
Smart Ways To Use Your Credit Card: Don’t Use Your Credit Card To Make Ends Meet
In case of any cash emergency, or you are running low on cash before payday. Do not use your credit card to make ends meet. Also, using your credit card or taking a cash advance is not going to work for you at the end. It might get you out the needs but over time, you’ll end up with even more debt.
Finally, use your credit card responsibly and secure a good credit score.