Shopping has never been easy since credit cards became a trend. You don’t need to touch money from your savings or no cash from your wallet. That is why credit card account has become a thing nowadays. The convenience it brings to consumers is on another level.
However, choosing the right credit card is the key to better financing. If you are not responsible enough to handle your credit card. It can damage your credit score, and credit repair cost can be expensive.
How to choose the right credit card account?
Shop for the best credit card interest
Refrain from settling quick when applying for a credit card. Not all issuers have the same interest, and the goal is to find the lowest interest rate. Analyzing which credit card account you can save money on is crucial.
An example is comparing the 21% interest rate with no annual fee and the 9% interest rate with a $50 annual fee. Which of these can you save more money on?
Compare credit card rewards and benefits
There are rewards or points you gain for every purchase you make. The interest or annual fee you pay may be reduced using these points.
Comparing the benefits you get from one credit card to another is crucial. You have to do the math so you can get the best credit card deal.
For instance, you get 10 points for every dollar you spend on every purchase and a dollar for every 1000 points. If you made a $50,000 purchase in a year, that would give you a $50 cashback. If you pay a $20 annual fee. You still have $30 left. That’s a win.
However, if the annual fee exceeds the cashback you received, that’s a loss. Cross that card issuer in your list.
Studying Credit Card Statement
Managing your credit online is convenient because you can always check your credit card statement anytime. Just log in to your account, and there is it.
Things that you need to check on your credit statement are the following:
- Amounts- make sure the amount on your personal receipt and credit card statement match. This will help you track your pattern and adjust your spending if necessary.
- Balance- make sure that your monthly balance is within your means or possibly way below it; in doing so, you won’t be able to much compromise if there is an emergency. Emergencies can happen anytime, so it is better to keep extra in case this happens.
- Purchase interest- when you have a credit card and cannot afford to pay the full balance, there is a minimum payment that you need to fulfill. And the remaining balance that isn’t paid will hold interest. And that interest will reflect on your next billing.
- Payment date- when you have too many bills to pay, it will be hard for you to keep up and remember all the dates the bills need to be paid. You can pre-pay using your telephone or the internet to keep up with your credit card bill. One of the best ways to keep up with your bill is to set up an auto-payment. It will be automatically deducted from your bank account.
Staying Out Of Danger Zone
Having a credit card means temptation. But despite these temptations, you still need to be responsible in swiping and using your credit card because, at the end of the day, you still need to pay for this purchase.
To stay out of danger, you have to avoid the following:
- Cash advances- unless it is for an emergency, you should try to avoid taking out cash advances because the moment you have the cash in your hand, it will have interest, and on top of that, there could be other charges applied.
- Hitting your credit limit- spending only 30% of your credit limit will help you keep up with your bills, and not only that, it can help you boost your credit score.
- Impulsive purchases- think twice, thrice, or even a fourth time when you want to buy something. Do you really need that? Or do you want to buy it because you want to? Will it be useful for you? If not, do not buy it. Responsible buying is the key to financial stability.
- Overusing credit card- you may not be paying using cash when you use your credit card for any purchase; however, you’ll still have to pay for it at the end of the day.
Use Your Credit Card As A Tool
Credit cards can be a way to downfall somebody, but they can be an advantage for you. Regardless of your credit card’s temptations, you need to discipline yourself and make a credit card a tool.
Use a credit card to boost your score. It is beneficial when you plan on taking out a personal loan, car loan or mortgage.
A credit card has many advantages; you must know how to use it.
If you need assistance boosting your credit score, seek credit repair assistance near you.
Credit cards are nice and convenient until you lose yourself and get swallowed by the temptations of having one. Knowing how much you can afford to pay on balance is important.
Be responsible enough to live within your means and do not overspend. Credit cards can be a life-saver but a disaster if you take advantage of them wrongly.
If you are in trouble because of your credit, you can always seek credit repair help from us at Credit Repair Now.