Smart Credit Card Management
Smart credit card management is vital as it helps you build your credit score. It protects you from fraud as well as maximizes your chances of utilizing its rewards.
A great credit report makes it easier to apply for new credit and also affects your credit score. So use it wisely and build it properly with some of these tips on smart credit card management.
Pay your bills on time– Always be prompt with paying your dues. Even one lateness can affect your credit score tremendously.
Do not apply for Multiple credit cards– Excessive credit always looks bad in the eyes of the creditors. It negatively impacts your financial status. So avoid applying for numerous cards even as you look for the perfect one.
Avoid applying for credit you do not need. You can opt to have 2-3 cards.
Always review your credit card report– This makes it easier to identify and correct any possible mistakes. Mistakes often lead to bad credit report hence a bad credit score.
Use Auto-Pay– Auto-Pay makes it easier for you to pay your bills on time each month. It takes away the human error of lateness when it comes to bill payment.
On the same note, you can also schedule online payments to pay 5-7 days in advance as payment processes vary.
Pay more than the minimum payment– This makes you look credible to the creditors. It paints you as a loyal and responsible customer. You will also save money especially on interests for any revolving balances.
Do not use all credit on your credit card– Always leave a small balance on your credit card whenever possible. Creditors often consider such accounts at lower risks when reviewing it for credit.
Request higher credit limit– This will boost your credit score as it boosts the available credit. Lowering your utilization process altogether. However, it only works if you do not use the additional availed credit.
Avoid impulse buying– This applies to anyone, credit or not. Buy only what you need, the rest is a dent in your bank account.
Keep your card secure-This is to simply avoid any unauthorized transactions. So keep the PIN and security codes secret.
Keep your account open– Closing a credit account does not help you in any way. When you close a credit account, the credit obviously decreases but so does the credit score. Just try and keep tabs on them and make prompt payments.
Also, keep the account active to avoid any closure by the banks or creditors.
Simple but hard to execute for most people. Anyhow just take note as smart credit card management is often the key to good credit.
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