Credit cards are truly great financial weapons when used wisely. They not only can help you establish a line of credit but when used correctly they can help you dig yourself out of debt. That being said it is entirely easy to get into the habit of relying on your card too much. Sure, it is nice to earn those miles or rewards, but there is such a thing as relying on your card too much. When this happens it becomes all too easy to overspend and end up in debt. Whether you are one of those individuals that use credit card irresponsibly or you are just new to credit cards, you can do yourself and your credit a favor by learning to use them more responsibly.
Always Pay On Time
It probably seems like a blunt statement, but paying on time is key to using your cards wisely. When you miss payments it's not as simple as paying what you owe to dig yourself out of trouble with the creditor. Late payments usually come along with fees and penalties, which will late lead to higher interest rates. Make it a top priority to pay your payments on time. Either establish some kind of e-mail or text message alert that will remind you when payments are due.
Know The Cards Available And Rates
Credit cards are without a doubt a handy financial tool to have around, but it doesn’t mean that they are all the same. Maybe you just received a credit card offer in the mail guaranteeing that you will be offered at least a $5,000 monthly limit. Maybe you are offered no interest until next year. Whatever the situation is, you need to be aware of the fact that there are a number of cards available along with a number of card providers. You can compare cards at websites like https://www.ocbc.com.my/personal-banking/Cards/credit-cards-compare.html.
Always Pay More Than Necessary
It can be easy to want to spend that extra money elsewhere when you have it. Sure, you have worked hard and deserve a new outfit or a night out on the town, but when you put that extra cash toward your credit card bills, you are making an investment in your future. When your credit card statement comes at the end of the month, you’ll see the total that you owe for the month with a minimum amount. The minimum amount is, of course, the amount of money that you can pay to the creditor without getting in trouble. Well, taking that extra money and putting it towards your overall debt will decrease your interest rates and lower the overall amount that you have to pay in each month.
Always Check For Errors
The credit card company might want you to think that they are perfect, but this is not the case at all. Credit card companies are run by humans and humans are known for errors. Just a list miscalculation in your credit card statement and you could be looking at hundreds to thousands of extra charges in interest rates. Always make sure that you are taking the time to scan your monthly statements for accuracy.