Credit cards, when used properly and wisely can be a very good financial tool. The challenge remains that many who use credit card often use it to run into debt. Others use it to satisfy their intuitive spending habits. These Top 5 Tips about credit cards everyone must know is here to help you. These tips will guide you a lot on the best usage and management of your credit card without sweat.
Foolishness, they say, is doing the same thing repeatedly and expecting a different result. So, if you want a different and better result about your credit card, then this Top 5 Tips about credit cards everyone must know will go a long way to help you. Before we go into details, stop. Decide you are going to implement these tips. If you are not ready, maybe after reading this, you will be convinced it is meant just for your good.
Top 5 Tips About Credit Cards Everyone Must Know
1. Pay off your balance every month. Avoid paying interest on your credit card purchases by paying the full balance each billing cycle. Resist the temptation to spend more than you can pay for any given month, and you’ll enjoy the benefits of using a credit card without interest charges.
2. Use a rewards card. If you’re using a credit card for most or all of your purchases, it makes sense to use a card that offers rewards. Not only can you avoid paying interest, but you’ll also earn rewards such as cash, airline miles or retail points.
3. Download the app and get set up for Internet Banking. Seems like it goes without saying. Most of the big banks and lenders offer smartphone apps and basic Internet banking for you. If you can use these facilities then it will help you to stay in control of your credit cards by monitoring your use, make payments on time and watching out for any grey charges from subscription services, unwanted auto-renewals or simply unrecognisable charges.
4. Know which card to use and when. Chances are you have more than 1 credit card in your wallet or mobile phone case. In fact, a lot of individuals have 2 credit cards. You should be flexible to avoid surcharges and maximise your rewards points earnings by using the best credit card for the place you’re shopping at. Here’s a no-brainer, if you have an American Express card and a Visa issued credit card then opt for the Visa to avoid surcharges when retailers and businesses try to sting you.
5. Use the credit card as a budgeting tool. If you’re confident you can use a credit card responsibly and pay off the balance every month, try using it as a budgeting tool. By making all of your purchases with your credit card, you can see exactly how much you’ve spent at the end of the month. Of course, you should only do this if you know you can pay off the balance each month. To make sure your credit card spending doesn’t get out of hand, never charge more to your card than you have in your bank account.
We have outlined these important tips for your credit card usage. These tips are meant to guide you and protect you. We believe these tips will help you become more in charge of your financial life.
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