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Managing Your Credit Card

Credit cards can be a handy way to borrow if you use them in the right way, but get it wrong and your find your debts spiral out of control. Don’t go over your credit limit. Keep your purchases and expenses within your credit limit. If you need an increase of your credit limit, then contact the service provider or bank. Call for the request only if, and only if you can comfortably afford to repay the higher amount.


Credit cards are not debit cards. You pay fees and higher interest than normal. This is one reason you should avoid recurring monthly payments charged to your credit card. Another reason you should avoid recurring payments is the danger that you may not be able to realize how much is going out of your account.


Pay on time

The number one rule for savvy credit card use is to always pay your bills on time. Use the rewards to your benefit and use your plastic to help you build your credit score. Always check your credit card statements and credit report. Pay off high interest debt.


Fraud alert

If you don’t regularly check your credit card account, you can automate the fraud detection process. Many large card issuers now allow you to set up mobile alerts that will notify you when you are approaching your credit limit, when the card is used, and anytime the card company detects unusual activity.


Build your credit score

Getting a credit card and using it regularly and responsibly is one of the quickest and most effective way to build or rebuild your credit. To have a good credit, you should carefully manage the borrowing and payments of your debt. Treat your credit card like a debit card. If you don’t have the cash, do not purchase anything. It is always wise to keep a budget.


Limit the number of cards you have. You do not need more than one credit card. One credit card is all you need. Having many credit cards will reflect poorly on your credit score. Be sure to choose a good credit card with low fees and penalties.


Keep the credit low

Read your monthly statements carefully. Pay down or pay off your credit card balance in full every month, if possible. When it comes to paying off credit card balances, avoid making new charges, focus on paying off the card with the highest interest rates first and always pay more than the minimum payment.



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