Today credit cards are more of a necessity than they are a luxury. We use them almost everywhere and you can’t shop online or even rent a car or a hotel room without one. That makes not only having the right card but using them responsibly is more important than ever. A credit card can be a financial tool without becoming another instrument of debt. Let us show you how to use your credit card wisely and make it work for you.
Higher Credit Limit
If you are looking at a couple of different cards then look for the one that will give you a higher credit limit. This can help improve your credit score. Better credit scores mean cheaper mortgages and car payments. Not only that a higher limit can help you when it comes to having to make a large purchase in an emergency.
Pay on Time Every Month
Not paying your credit card bills on time can hurt you in a number of ways. First of all it can impact your score and lower it which will hurt you the next time you try and borrow. The second thing that can happen is that your interest rate can rise. One late payment can send your interest rate skyrocketing, even as high as 30% on top of that you can trigger late fees, which you don’t want either.
There are a whole bunch of cards that offer different types of rewards, everything from cash back to the ability to travel. However, there is almost always a catch attached to them so read the fine print. Don’t sign up for every card that promises you a reward that impacts your credit and it’s a recipe for disaster.
Always Pay More than the Minimum Payment
You may be tempted to only make the minimum payment on your credit cards, after all it is only a small amount. This doesn’t do you any favors at all it could take you more than 10 years to pay off your balance at that pace and you could end up spending thousand in interest payments. Even if you can’t pay the entire balance then try and pay as much of it as possible to save yourself interest charges in the long term.
Always Keep Your Accounts Secure
Keep your credit cards in a safe place and never share things like PIN numbers or answers to security questions. Identity theft is a problem and it could take years and a great deal of trouble to put your accounts back in good standing.
A credit card is a financial tool, but it has the potential to be abused. Don’t let that happen to you manage your credit cards wisely and you won’t regret it.