7 Effective Tips On How To Manage Your Credit Card Wisely

While it is true that credit cards come in a handy when we are caught cashless on certain instances; it is also wise to take note of the fact that excessive use of credit cards can only lead you to go straight down the drain of having a bad credit history.

It’s important to be smart when it comes to using credit cards and managing your debts associated with them so that you don’t find yourself in trouble in the long run. It’s so easy to acquire debts through credit cards but extremely hard to get out of it once you’re hooked.

Here are some basic tips to consider when it comes to managing your credit cards wisely.

1. Only use one card

Normally, most people would use cash advances from one card to be used in paying the debt in another. This will only make matters worse with your financial condition; not to mention the hassle of managing multiple credit cards.

2. Pay the monthly balance of your credit card in full

You need to pay in full the monthly balance of your credit card. However, if there are some inevitable circumstances that may arise; then, you have to pay your debt within a maximum of two months—no more, no less.

3. Look for other options

Opt for another alternative if you find yourself always maxing out your credit limit each month. An alternative would be to apply for a personal loan which charges lower interest rates compared to credit cards.

4. Use a card calculator

Grab hold of a card calculator if you deem that you can only pay the minimum amount required for each month. This way, you will be able to determine as to how long would you be able to pay off your debt. Furthermore, take the time to talk to a financial advisor who will help you manage your credit card in a much healthier way.

5. Be very cautious of cash advances

You may be able to enjoy interest-free days with your credit cards, but you have to remember that it does not cover cash advances. No amount of payment will ever pay off cash advances as long as there is still an outstanding balance on your credit card; meaning, any balance you have on your credit card must be paid off first. Also, your benefit of having interest-free days will most likely be forfeited until you pay off our cash advances.

6. Always keep the fees down

You need to learn when to use credit cards to avoid getting hooked with unnecessary swiping; this way, you will have a lesser amount to pay for your monthly dues. You must keep it a point to always pay in full and on time to avoid piling up of finance charges.

7. Look for alternatives in making payments

To date, people have the option to pay either over phone or online. These routes are probably cheaper compared to paying over the counter. It’s smart to always look for ways to save money no matter how small it may seem.