Would you classify yourself as a smart Credit Card user? Or you aren’t sure whether you use your card wisely or not? Well, in that case, our tips to use your Credit Card wisely will certainly help you. How, you ask? The optimum use of Credit Cards will boost your Credit Score. And, as we all know, a good Credit Score is what everyone wants, right?
So, here are a few pointers you must read to stay Credit Card smart, always!
Choose An Ideal Credit Card
It’s extremely important to choose the right Credit Card. If you are a frequent flier, you can opt for Airline Credit Cards. If shopping equals bliss, Shopping & Cashback Credit Cards are ideal for you. Entrepreneurs can choose from a wide range of Premium Credit Cards. Make sure you read all rewards and benefits offered by the Credit Card before you apply for it.
Set A Practical Credit Limit
The Credit Card provider may offer a high Credit limit. However, if you think you are too much of a spendthrift and may spend more than you can pay on a monthly basis, lower your credit limit. Also, it’s better if you don’t raise your credit limit during the first year so that you get a good idea of how well you manage your Credit Card.
Implement A Self-imposed Credit Limit
While the bank offers a certain credit limit, it’s advisable to set a personal credit limit too. Monitor how much you spend every month and aim to exhaust only less than 30% of your total credit.
Distribute Expenses On Multiple Credit Cards
Most people face a dilemma over whether multiple Credit Cards are good or bad. Anything in excess is bad, so don’t opt for too many cards. But opting for multiple Credit Cards based on the variety of benefits they offer is a wise decision. What’s more, your expenses will be split across multiple cards and, hence, the percentage of amount spent on each card will decrease.
Always Pay The Full Billed Amount
No one enjoys partial payments. The same is true of banks. So, when you receive your Credit Card statement, make sure you pay the full billed amount. Don’t ever follow the norm of paying only the minimum amount due. This will not only increase your debt but also affect your Credit Score.
Avoid Cash Advance Facility
Unless it’s an extreme emergency, avoid using the Cash Advance facility on your card. The interest rate on Cash Advance is the highest. Try to swipe your card wherever possible instead of withdrawing cash using your Credit Card. Alternatively, if you are facing a cash crunch, opting for a Personal Loan could be a better solution.
Close Credit Card Accounts Wisely
Do your homework before you decide to cancel any of your Credit Cards. If the card costs you a lot, it’s okay to consider cancelling it, but you can also talk to your provider to lower the interest rate. For all you know the card can start working in your favour!
Description: Would you classify yourself as a smart Credit Card user? If you aren’t sure, our tips to use your Credit Card wisely will certainly help you.