5 Tricks to Efficient Credit Card Management

Proper management of credit cards is crucial to financial wellbeing. Improper management of credit cards do not just lead to financial hardships but can also cause security concerns.

Do not be afraid.

You can keep your cards secure, get great deals and also manage your debts by being a little careful. Here are some tricks to proper credit card management.

Select the Right Credit Card

To manage your credit cards right, you need to choose right.

Select credit cards to suit monthly and daily finance.

Credit cards offer a range of benefits and offers, so choose wisely to accrue most benefit.

What should you check before choosing a credit card?

• Rate of interest
• Offers and benefits
• Penalties and fees

Remember your Credit Card Limit

If you have multiple credit cards, check your credit card limit before making a purchase. You must make this a habit regardless of the amount of purchase.

The credit card limit is set depending on credit history and credit score.

Lower the credit card score, lower is the credit limit.

You can request higher credit limit when you apply for a credit card.

Pay on Time

Payment history plays a dominant role in credit score.

You must make the minimum payment on time. However, it is advisable to make the full payment always to avoid interest. You can take the following steps to make payment on time:

• Set up automatic payment: By setting this up, you can be sure of on time payment. If you prefer paying bills manually, you can set it up as a precautionary step.
• Set reminders: You can set up payment reminder when your credit card statement is ready or your bill is due.
• Change due date: Most card issuers allow you to change the due date. For multiple cards from the same issuer, you can set up the same date so that you can log in just once in a month to make the payment.

Use Credit Cards for Big Purchases

Most people who use credit cards for small payments end up with debts.

These little purchases are often forgotten and they might incur huge debts if left unchecked for long.

So, it is better to use your credit card when you are making a purchase requiring hefty amounts, and then clear the payment in a few months.

Make sure to maintain a strict timeline for this, so that you do not miss making payments.

Do not use your credit card for another purchase till you make full payment.  

Check Your Credit Card Terms and Conditions

Check your credit card terms and conditions.

Credit card terms and conditions point out your rate of interest and fees to be paid by the cardholder. Your credit card terms and conditions contain details like annual percentage of credit card to be used for purchase, balance transfer and cash advances. The balance transfer fee, annual fee, cash advance fee and late payment fees are also mentioned in this section.

By following the above-mentioned tricks, you can easily make your credit card work for you, rather than against you.