Credit cards are the utmost needs of the words, and almost everyone holds a card with one bank or the other. But, what matters is that using your card, you should not be compromising on your credit rating. You should always strive to use wisely so that you enjoy all the perks that come with the credit cards.
How to use your Credit Card Wisely?
Some of the ways that you can use your card wisely are:
1. Make Timely Payments
Credit cards may turn out to be evil if the payments are not being made on time. Along with the hefty charges levied on the card, you might also have to respond to the threatening calls from the bank/ issuer. This makes it imperative that the bills should never be missed. Set a reminder that lets you pay your bill on time, no matter it is the Minimum Amount Due (MAD) which is being spent.
2. Use a Card that Lets you Enjoy Rewards
You should always have a card that proves to be an advantage to you. Enjoy the reward programs that are offered by the credit cards like converting the reward points into money that can be adjusted against your bill or maybe air miles that you can use while booking flights.
3. Limit the Number that you Carry
While you get to enjoy many benefits that come along with the cards, you need to make sure that you carry a limited number of cards. This is because holding too many cards deteriorates your credit score. Also, it lets you get baffled into the payments and expenses.
4. Keep your card Off any Debts
You should always make sure that the full payment is being closed every month on or before the due date so that it is never a debt on you. It also makes sure that no fee has been levied on you. Along with this, it lets you maintain a clean credit record, and you are in good books of the bank.
5. Keep track of the Hidden Fees
Always check your bill before making the payments as there may be scenarios when you made the payment on time, and still some charges have been levied due to some system issue or late credit on the bank’s behalf. Many fees may have been collected on you, and you blatantly pay everything trusting your bank blind-folded. Make sure to be a rational and prudent customer and make the payments only after checking the bills.
6. Looks for Lower Rates
Always look for the cards that levy low rates of interests as these are customer friendly cards. If you have been a customer of the bank and you hold a good history, the chances are high that the bank may offer you a card that has low interest rates.