Credit cards could be a bane or boon for you depending on which card you choose, how you use it and what kind of personal financial planning you have in place. Many people use credit cards to explore the available credit at times when there is a need to do so. However, a majority of people use credit cards more randomly and without any specific necessity. A practice of using credit cards without pondering over the repayments and repercussion is why a huge chunk of the American populace gets into debts. Credit cards are one of the most influential parameters of your credit score and if you choose to use them wisely then a world full of benefits await you.Â
Here are some tips which can make your experience with credit cards a highly fulfilling one.
- Â·Â Â Â Â Â Â Â Â There are hundreds of different credit cards in the offing. We are not looking at specific qualifying criteria but it is always wise to pick the best credit cards suited to your lifestyle. If you drive a lot, credit cards with handsome fuel bonuses and cash backs on purchases of gas would be ideal for you. If you are an avid shopper then credit cards offering a horde of retail chains and ecommerce sites under their spectrum of cash back and discounts would be ideal. There is a perception that one should confine his or her expenses according to the features of credit cards but your lifestyle is unlikely to change hence pick one that fits your lifestyle and requisites the best.
- Â·Â Â Â Â Â Â Â Â Spend only that much money on your credit cards that you can pay for in the next month. At best, it should be in two months. The moment you start spending more on your credit cards and keep piling on unpaid bills, you are heading for trouble.
- Â·Â Â Â Â Â Â Â Â Never pay a dime towards interest by avoiding late payment fees and paying bills in full every month. This is a brilliant way to increase your credit score and also the credit limits.
- Â·Â Â Â Â Â Â Â Â Determine a certain amount which you would put on your credit cards every month and never surpass them, come what may. If you spend less one month, good for you and if you spend more in a month then cut off the difference in the following month.