Using Credit Cards Wisely: Dos and Don’ts
It’s very difficult to handle the credit card. Before starting playing the credit card game you must know the rules of the game. If you want to stay out of the trouble there is the only solution that is credit repair companies that retrieve your credit report from the three credit bureaus( Equifax, Experian and trans union), it also fixes error on your credit reports and also helps you out in improving fico score.
If you go through the credit repair services reviews you come to know that they remove negative items from your credit reports.
But besides these important things to know some dos and don’ts of credit card usage encourages healthy spending habits.
• Without reading the terms don’t apply for the credit card. Evaluate your credit card based on the fees, interest, and rewards. A good way to, decide whether you are getting the best deal is comparing credit card with each other.
• For every day, purchase doesn't use your credit card. Using your credit card for the substitute for cash is a habit that can quickly lead to the dept. for the ordinary purchase use cash instead of credit card.
• Don’t go into the habit of making minimum only payment, as it increases the amount of interest you end up paying. You must pay as much as you can on your balance each month.
• The things that you can’t afford, purchasing them don’t use a credit card. If you can’t afford today then you can’t afford it tomorrow or even next month or year.
• Before closing your credit card know how your credit card will be impacted. A credit score can be hurt when closing the credit card. Don’t close the credit card that has balance or those that make up the significant amount of your credit history.
• Purchasing items you need verses those you simply want, make wise decisions about that. Making use of the credit card is the responsibility and recognising the difference between need and just want.
• If you are not able to make your payments on time, then let your creditor know in advance. Forgo your credit card payment is the worst thing that you can do.
• The large part of your credit score considers the amount of dept. you have, so stay with 30% of your credit limit. You can maintain a good credit score by keeping your balance low. It is easier to manage the low balance.
• If you are offered the low interest when receiving the credit card and your current rate is higher than negotiate a lower interest rate.
• Each month review your credit card statement thoroughly each month. Read each transaction on your card to ensure your last payment is applied correctly and you were charged the right amount for your purchase.
These simple dos and don’ts make your purchasing easy and healthy spending habits. Being a credit card holder you must go through the credit repair companies review to choose the best one to remove the negative items from your credit report.