The invention of bank cards was a giant leap forward for humans. People around the globe use their bank cards for all forms of purchases and payments. The credit cards give the people, the freedom of purchasing what they want, without having to depend on their bank balance. Bank cards are used by an array of people in cities and towns across the world. It is a fact that a credit card can be a boon as well as a bane concurrently.
At times, people do not know how to effectively manage their credit cards. This is the reason, their credit score is severely affected plus they find it hard to obtain financial the help of banks and other lenders. In order to make sure that your credit history is not affected, you must effectively manage your cards. You need to be careful about making payments and using the card for any purchase.
Once you make your credit card payments on time, your credit score improves and you may obtain higher amount of credit. On the other hand, if you fail to make the payments on time, your credit score is negatively affected and you’ll not get any further credit from financial institutions. Here are some important tips which will help you in effectively managing your bank cards:
1. Plan your purchases
Before purchasing or buying any product, determine if it’s necessary to buy it. You must make a list of your priorities and stick to that so that you could arrange for the amount of money needed to pay your credit card debt. At any point of time, make sure that you do not purchase something too expensive as it can make you cross your monthly budget or the credit limit on your card.
An effective way of method of planning your purchases would be to make a shopping list. At the beginning of the month, make an effort to make a set of things you need to get with the card and stick to that list whenever you can.
2. Check your statements
Check your statements on a monthly basis as the statements will allow you to understand your spending pattern. Based on your observation, you can test to avoid unnecessary purchases. Also, checking the statements will assist you to in knowing the minimum payment due for a specific month, to be able to make that payment promptly and prevent extra charges or fees.
It is simple to check your statements online, and you will also use your smartphones to help keep a track on your own card usage. Mobile alerts can be quite helpful in making certain you do not find yourself paying more than what you are supposed to, when you use your credit card for any transaction.
3. Make an effort to make full payment
Make an effort to make full payments, whenever possible. Once you pay your credit cards in full and within the deadline, there is no need to pay any interest on the billed amount. Besides, paying the charge card balances in full will help in improving your credit score. Even if you cannot pay your credit card balances in full, you should always make sure that you pay the minimum amount due, within the due date.
Apart from saving a substantial amount of money on interest, you will also be able to improve your credit score and increase your likelihood of obtaining more credit in the foreseeable future.
4. Keep a tabs on supplementary cards
Sometimes, you might your investment fact that you have provided supplementary cards to your family members and these cards are linked to your charge card account. The way these cards are employed can have a direct effect on your credit card account. Hence, you should keep a track on them and also ensure that the transactions completed with them are covered within the payment deadline.
Besides, you also have to keep a tabs on these cards to help you ensure that the borrowing limit of your card is not exceeded. If 현금화 is exceeded, you’ll be paying an over limit fee along with other hefty charges.
5. Look out for promotional offers
Why pay more when you can get the same product by paying less? Be considered a little smart when using your plastic money and ensure that you utilize the selection of offers and promotions provided by the card issuers every once in awhile. These promotions can offer you with usage of discounts, deals and privileges across different segments such as dining, travel, shopping and so on.
You can not only spend less through these promotional offers nevertheless, you can also enjoy a number of other exclusive privileges that may enhance your experience of using a charge card. Make certain you always visit a website to purchase information regarding such promotions to enable you to take full advantage of them.
6. Make multiple payments in per month
Don’t simply limit yourself to creating a single payment within the payment due date every month. Instead, try to make multiple payments in case you pay small amounts. It’s been observed that the credit card issuers and the credit bureau have a tendency to send payment reports more than once every month, if there is a great deal of payment activity in an account.
Once you make multiple payments you ensure that the large amount of positive information about your credit card usage is being delivered to the credit bureau and along the way your credit score will receive a big boost. For instance, if the minimum payment due for the month is S$1500, do create a payment of S$1500 and apart from that also make other amounts in exactly the same month.
7. Avoid cash advances
You will be given the feature of withdrawing cash together with your credit card nevertheless, you should avoid utilizing this feature. Once you withdraw cash together with your card, you will end up charged a cash advance fee and you will also not get any interest free period to make the payment.