Handle your credit card well
11 / Aug
Your credit cards play an important role in building your credit score. Today, if you have a credit card you must use it because your credit card issuer will, otherwise close your card. Closing your card will definitely hurt your credit score, so you use them to maintain a healthy credit score.
Credit cards need to be handled properly if you want to be hassle free. If you can use your credit cards wisely, you may be rewarded with a good credit score, a rate cut in interests as well as an increased credit limit. Credit cards used in the wrong manner might result in a bad credit score, increased interest rates and lower credit limit of course.
Credit cards don’ts
When using a credit card don’t:
- Make everyday purchases like grocery, clothing and gas with your credit card. Do not use your credit card as a replacement for cash. These are items you need to purchase with cash and if you use your card for ordinary purchases like this, you may get in to this habit and hence incur huge credit card debt without realizing on time.
- Make minimum payments only. If you make minimum payments only, your time to pay off the entire loan will increase and hence it will also increase your interest rate. Pay off as much as you can to get to get off the debt burden quickly.
