Credit Smarts To Get The Most Out Of Your Cards

Gone are the days when cash is the primary form of payment. These days, you’re more likely to see someone swipe his or her credit card to make a purchase. We love credit cards because of the financial freedom they afford us. The convenience of ‘buy now, pay later’ is hard not to indulge in, especially if we’re in a financial rut. Credit cards also come with the benefits of enticing offers and rewards that can help us save money but only if we use our cards smartly. Credit can be pretty complex and if not utilized properly can cause more damage than good. Take note of these quick tips to maximize the benefits of your credit use:

Keep Track Of Your Spending

With the power of credit, it can be easy to get caught up in the ease of swiping for each purchase. It’s imperative you exercise this power with caution! Stay in control of your spending to avoid racking up debt. Try using a spending tracker app to help keep on top of your purchases. Manage your money properly using a budget and regularly check your statements.

Pay Bills On Time

This may sound like obvious advice but many people ignore it and pay the price. Be aware of your credit card payment due date and set reminders or alerts if necessary. Better yet, set up an automatic payment to ensure you don’t miss the due date. Make sure this payment covers at least the minimum monthly payment but try to pay additional on a regular basis to avoid heavy interest rates.

Watch Your Credit Limit

Your credit limit should be set at a sensible amount that you know you could repay within a reasonable amount of time. Higher credit limits may tempt you to spend more on things you cannot afford.

Check Your Statement

Many of us see our credit card statements in the mail and chuck them without opening them up. This is a bad habit. Whether you review your statement on paper or online, this is something you should become accustomed to before paying your bill. Make sure all charges are accurate and review any bank fees to ensure they are applicable. You’ll also get a better sense of your spending habits by scrutinizing your bill before making payments.

Understand Your rewards

Most credit cards provide rewards for spending on certain items. Often times rewards come in the form of cash back on purchases, gift vouchers and travel benefits. No matter what form your rewards come in, make sure to fully understand the terms and how to utilize your card to the highest potential. Always try to strategize your expenses and spending behavior to reap the greatest reward benefits.

Avoid Using ATM

As a credit card holder, you have the ability to make cash withdrawals from an ATM. This is called a cash advance and is something you should avoid at all costs. These withdrawals come with hefty fees and a high APR.

Keep Information Secure

Credit card safety is essential. Always keep your cards in a secure place. There are many ways to protect your information. Be sure to secure your devices and networks, keep passwords secret, report lost cards right away and shred your statements. For further information on tips to keep your credit card and identity safe visit here.

These credit management principals can help you avoid costly fees and interest and make the most of your credit cards.