4 Tips Every Credit Card User Should Know
Credit cards can be a great tool to help you build credit! You can use them to make larger purchases and they can be a super-convenient way to bank. As nice as they are to have when you need them, credit cards can also come with complications. Interest rates, transfers, due dates–it’s hard to keep up with it all! Never fear, though. We’ve got four handy tips every credit card user should know.
Your Credit Card Limit Isn’t Always Set In Stone
Sometimes, credit card companies will raise your credit limit with no action required from you. Your credit card issuer might have determined that you have a healthy credit history and appear to be great at paying back your debts. You can also call your issuer to inquire about raising your limit. Raising your limit can boost your credit store because it lowers your credit utilization ratio–the ratio of money you have borrowed to the limit to which you can still borrow. If you continue to spend and borrow responsibly, this is a win-win situation.
Don’t Forget Your Due Date
A good way to prevent a missed payment is to make smaller payments throughout your billing cycle. Most card issuers will accept payments before a statement is issued. Avoid a headache by paying on your balance when you get paid or run into a little extra cash. Keep your payment history looking good and don’t fall victim to a forgotten due date!
Take Control of Your Payment Schedule
Don’t like the idea of smaller payments? You can just as easily stick to one payment. Stay on top of it by adding it to your calendar to avoid fees or strikes on your credit score. Call your bank and figure out the best time each month for you to make a payment. They can adjust the due date to fit the most convenient time for you.
Keep an Eye Out for Offers
Look for deals put out by credit companies! Apply for certain credit cards that offer promotions throughout the year. Many issuers will make offers for longtime cardholders. Look for perks like 0% APR, rewards points and holiday deals.
The bottom line is: stay smart when it comes to your credit card usage! Use your card for needs, not wants. You can avoid pesky interest buildup by paying off your balance every month. If you can’t pay it off monthly, strive to stay under 30% of your credit utilization. Being a responsible cardholder can be tricky, but if used properly your credit card can be a great budgeting tool. Using these tips every credit card user should know, you can keep your bank account looking sharp.
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