How to Handle an Unsecured Credit Card Responsibly WWW.NEWHORIZON.ORG
To manage your unsecured credit card in the best way possible, we encourage you to employ the following suggestions:
Keep a tab on your credit card charges. Yes, your line of credit may come with a high spending limit. Still, it doesn’t mean that you should use it to the fullest or even go beyond it. Always remember that maxing out your credit card can affect not just your credit history, but also your financial prospects. After all, such habit will cause you to incur pesky fines and penalties, usually in the form of overdraft charges and declined transaction fees.
And that doesn’t end there. It can also compromise your good credit standing and affect your likelihood of qualifying for affordable credit programs, in the coming months. So, we encourage our readers, such as yourself, to be mindful of the bills, expenses and purchases they charge on their respective lines of credit. In so doing, you can avoid going overboard with your credit card transactions.
Be very picky where you use your unsecured credit card, and where you disclose your account information. Choose business establishments and shopping sites wisely. Before doing business with one of them; see to it that you have conducted thorough investigation on the level of security and privacy they offer to their customers and clients. In so doing, you can have the assurance that whatever sensitive information you’ll share with them will be handled with utmost confidentiality.
Make sure you settle your bills in full. Did you know that cardholders who fell on the habit of submitting just the minimum amount due to their card issuers tend to make significant payments on interest? So, if you wish to keep you interest payments minimal, we advise you to settle your bills completely. Not only that. You should also resolve to submit on-time payments, each month. After all, this factor constitutes 35% of your credit score and thus affects your chances of qualifying for another unsecured credit card and even for huge loanable amounts, later on.
Check your monthly billing statements for errors and inconsistencies which could inict damage to your credit proďŹ le. Watch out for incorrect payment entries, outdated accounts, and even for fraudulent transactions. Keep in mind that the limited liability privileges afforded to credit cardholders will only apply if you can report cases of credit fraud and identity theft to your card issuer, within two to three working days. Hence, you should be very vigilant when it comes to scrutinizing the items in your monthly statements. And make sure that they’re accurate and up-to-date, all the time.
Abide by the terms and conditions of your credit card agreement. Apart from keeping up with your bills, you should also resolve to stick to the stipulations of your contract. That way, you can maintain a good working relationship with your card issuer, which is something that can help you get additional lines of credit, in the coming months. And see to it that you use the cash advance and balance transfer facilities of your credit card sparingly. That way, you can prevent your finance charges from spiking up and getting way out of hand.