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How to Put Your Credit Cards to Use Wisely?

How to Put Your Credit CardsA credit card is one of the important financial tools in the wallets of many individuals today because they are convenient safe and secure to carry transactions when compared to cash. Responsible use of the credit card will put you positive in the credit report and you will stand in a better to stay eligible when you need to secure a large loan like mortgage loan, business loan and any other type of loan. Many people will find difficulty in managing the credit rather than getting one. You should know how to put your credit card to use wisely pave a way for smooth management of credit.

Guide for Using the Credit Card Wisely

Whether you are making cash transactions or using the credit card for addressing your expenses, a key for effective money management is to make sure that you are not spending more than what you are bringing in. Irrespective of the size of the purchase you make with the credit card, you are obliged to repay it at the end of each billing cycle, otherwise, you will be penalised with a high rate of interest.

Know about credit card usage

Before you start hunting for the credit card, educate yourself about how the credit card works. Know how the interest rates and other related fee are charged? how the billing cycle is determined and minimum payments are made.

Choose the card wisely

There are a number of credit cards available in the market, choosing the right one will be quite challenging. You should gain the knowledge about APR charged on the card, related fees like late payment fee, balance transfer, cash advance fee and overdraft fee. You should also know your credit limit to ensure that you don’t use more than your credit limit.

Limit number of cards

There is thumb rule on the number of credit cards that one should hold in the wallet but, it is advisable to limit the number of cards so that you don’t miss the payments on due dates and you don’t spend more than you earn.

Track your monthly spending

It is nothing wrong to use multiple cards to address different needs in the life to enjoy more benefits from the credit card usage. Limiting the number of cards is caution here again. Irrespective of the number of credit cards you use, you should keep the track of all the expenses, keep the receipts of the purchases made with the card to avoid tempting for impulse purchase and overspend on the items that you don’t need.

Spend more than you can afford 

Establishing solid credit score is only possible with the responsible use of credit card. Using the credit card for addressing the regular expenses could be a sign that your monthly budget needs reviewing.


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