Credit cards have increased our purchasing power and allowed us to shop conveniently. However, it is important to know how to use credit cards properly, so that we can continue using them without the burden of dues piling up. By adopting a balanced and disciplined approach, credit card users can keep interest and charges at the minimum. Here we talk about certain tips to help you manage your credit card accounts wisely.
Adhere to the Credit Limit of Your Credit Card
Each credit card comes with a predefined limit which when exceeded attracts additional charges or interest rates. When using a credit card, ensure that you do not exceed the limit set by the issuer company. In case you have multiple credit cards, keep in mind each one’s limit and use them accordingly to avoid paying up high interest rates.
Use the Right Card
Most users today have not one but multiple credit cards, several of which are cards offering special benefits for usage at specific outlets. The credit card interest rates or charges may vary depending on their tie-ups or association with various brands or outlets. While using a credit card remember to use the right one to avail of the benefits and rewards associated with it. This will help you get the maximum benefits of using credit cards to fund your purchases. You can even compare credit cards held by you and use them according to the benefits offered by them for various purposes like booking air tickets, buying petrol, or using them at a specific outlet.
Pay Your Dues on Time
Each credit card has a specific cycle, and the used amount needs to be paid back before a specific date. Try to pay the full amount and not the minimum amount sought by the credit card issuer.To avoid late-payment charges, remember the due dates of each credit card and make the payments well in time. This will also help you in building a good credit score.
Use Credit Cards Wisely
Having a credit card with a good credit limit does not mean that you use the full limit to buy things which are of no use to you or out of your reach. Use a credit card only to buy things that are out of reach and for which you can pay and not get lured by high priced items just because they are available on credit.
Maintain and Track the Transactions Made with Each Credit Card
Many a times, having multiple credit cards means that you lose track of their usage. This can spell trouble for you especially when overspend and exceed a card’s limit. This can be avoided by maintaining a record of all the transactions made by using all your credit cards. This will help you track the usage and help in planning the payments of the due amounts on each card on time.
These tips will help you manage your best credit cards wisely thereby helping you manage your finances better and avoid falling into a debt trap.