Most people use credit cards these days to make payments or purchases. Credit cards help people purchase things without having to depend on their bank balance. With the increase of dependency of people on credit cards, it is important to know how to manage your credit cards. Efficient credit card management does not depend on how many credit cards you should have, but it depends on how you manage your credit score with a single credit card.
Inefficient management of credit cards leads to low credit scores, which makes it difficult to acquire financial assistance from private lenders or banks. So, make sure you are careful while making payments or purchases on your credit card. Making credit card payments at regular intervals will help improve your score. So, here are a few tips to consider to manage your credit cards effectively. Let’s discuss!
Plan your purchases – It is essential to plan your purchases. Making a list of priorities will help you determine the necessity of things. Don’t buy things that are too expensive or can cross your budget and credit card limit. The best way to avoid such expenses is to make a list of things you need to buy from your credit card, in the starting of the month and stick to that list
Check your statements – Make sure you check your statements on a monthly basis. Doing this will enable you to know your spending pattern. Accordingly, you can avoid unnecessarily purchases. Also, the statements will help avoid any delay in payments and extra charges.
Nowadays, you can easily check your statements online through your mobile phones or tablet. Mobile alerts ensure you do not make any unnecessary payments and provide the details of your credit cards when you do transactions.
Make full payment – If you make your credit cards payments in full and on time, then you can avoid interest charges. Also, it helps improve your credit score. If under any circumstances you are enable to pay the full amount, make sure you pay the minimum due amount within the due date. Doing this will increase the chances of getting a further loan in future, and will also help increase your credit score.
Keep track of supplementary cards – When you provide supplementary cards to your family, don’t forget these cards are linked to your credit card account. You have to make sure you keep a record of the transactions done on these cards and that you make the payment well on time. Remember you also have to make sure the credit limit of your card is not exceeded, otherwise, you have to pay hefty charges.
Look out promotional offers – Promotional offers are issued by the credit card issuers such as – deals, discounts, and privileges over different segments like – travel, shopping, dining and many more. Not only you enjoy a variety of privileges using credit cards, but you can also save money. Make sure you visit the website for more information about these promotional offers.
Make Multiple payments- You should not limit yourself making single payment within the due date. Instead, you can make multiple payments of a small amount. When you make more transactions, make sure you put lots of positive information, the credit card bureau keeps record of all your transactions.
Avoid cash advances – With credit cards, you also get an option of withdrawing cash. It is recommended not to use this feature, as you will not get interest free period, and you will be charged in advance. The overall balance of your card and the minimum payment due will be increased if you make cash advances. Also, it will be difficult for you to pay the full balance. Moreover, it will have a negative effect on your credit score, so you should try to avoid such situations.
So, we can conclude you do not need to worry thinking ‘how many credit cards should I have,’ to improve your score rather plan about how you can manage and use your single credit card. Make sure you use your credit card efficiently to improve your credit score.