Top tips on how to use your credit cards responsibly
Credit Cards Credit cards have become a popular commodity these days due to its convenience. You can buy things with it without risking bringing any cash. However, if you are a first-time credit card owner, it’s so easy to get carried away with its use. That is why we have come up with some great tips on how to use it responsibly and be on your way to a brighter financial future!
Building Your Credit
PAy on time One of the premise of using a credit card for bad credit is to build your personal credit history to show creditors or lenders that you are responsible enough to make payments of your purchases on time.
INcrease your credit limit Usually
credit
automatically
card
increase
companies your
limit
after 6 months. However, if this isn’t the
case,
call
your
credit
card
company to negotiate an increase. This could help you when you take out loans because
lenders
(comparable
have
credit)
a
with
baseline which
to
compare the amount you are able to pay monthly.
PAY in full Credit card debt is the primary reason for filing bankruptcy and in order to prevent this, it is highly advisable to pay your credit card bill in full so your debt doesn’t incur exorbitant interest fees. Moreover, it increases your credit score because it shows low credit utilization especially if it is less than 35% of your credit limit.
Create A Budget Factor
in
your
credit
usage when you are making a
budget
already money
so have
to
pay
that
you
allotted for
your
credit card bill and build up on your savings.
UNderstand the card act According
to
the
Credit
Card
Accountability Responsibility and Disclosure card
Act
companies
of
2009,
are
credit
mandated
to
give you an advance 45-day notice before any changes to your credit card
is
made
to
put
unfair
practices.
rights
so
yourself.
you
an Know
can
end
to
your protect
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