Credit cards can sometimes be referred to as devils in disguise. Some people can manage their cards perfectly OK while others struggle and invariable make the wrong choices when it comes to which card to have and how to use it. These tips will help you to make the most out of your card without it getting you into trouble:
- Always pay more than the minimum amount. Card payments are always allocated to interest and fees first so the more you pay, the more your balance is being reduced.
- Be wary of 0% interest cards. You may think it a good offer but the rate will rise at some point and it will rise significantly. This will increase your balance and your payments.
- Avoid prepaid secured cards. They do not increase your credit score because they are basically a debit card. They also have fees that are hidden in the small print. Apply for a secured credit card and pay a deposit on it instead.
- If you can, have you photograph imprinted on your credit card. You do have to pay for this but it does increase your security.
- Only carry one or two credit cards with you at any one time. This way you won’t be tempted to buy things you don’t need.
- Don’t apply for credit cards the minute you are eligible to. Understand exactly what they are for and how to use them first.
- Stick to a manageable budget and don’t charge every purchase to the card. Make sure you only spend what you can afford to pay back.
- Mae sure your pin number and passwords are not easy to guess.
- Keep one card for online purchases. This means, if your account is hacked you won’t lose too much by it and it limits the amount of information that is going out on the internet.
- Don’t consider it your right to have a credit card, it is a privilege. Used wisely they can improve your credit score.
- Introductory interest rates change – and quickly. IF you are not happy with your rate, get in touch and ask for a different one.
- Having a good credit history is the only way to get better deals in the future. Act savvy now and reap the rewards later on down the line.
Sometimes, using a credit or charge card can be fraught with complications. This is normally the case if you don’t really understand what you have applied for or if you have used an unscrupulous lender who just keeps adding on the interest and fees. Follow the above advice and your journey through the use of a credit card which will be much happier and much more secure.
Always keep track of your purchases and make sure you pay your monthly payments on time. Pay off more than the minimum where you can and keep the balance standing at as little as possible. Its good practice to only use your credit card for emergencies or for small purchases that can easily be paid off.