ATLANTA, March 2, 2014 /PRNewswire-iReach/ -- When it comes to managing a credit card, it would seem that there isn't much to it at all. Simply make your payments on time, and you're in the clear, right? Actually, there is a whole lot more to using and getting the most out your credit cards. It doesn't take much at all to find yourself in hot water with a credit card, and the higher the balance, the thinner and more dangerous the ice you wind up treading. These are eight habits that savvy card holders use to continue to make those important purchases with their cards and still stay out of the red area!
Even if you think you can easily keep up with your charges and payments in your head for your credit card, the large margin for error is still likely going to be there. Whenever you make a purchase, immediately log it in your finance software, and remember to record even the tiniest of transactions. Overlooking small expenditures is often what trips people up. Don't make that mistake!
Rather than merely spending and never gaining anything back from the system, take advantage of the reward programs that many cards offer. The best programs to keep an eye out for are ones that offer cash back incentives. These types of programs offer a small percentage of cash back on purchases made in specific stores. You can even save this money to make future payments on the same card!
Don't Use Your Cards for Emergencies
Whenever an emergency springs up seemingly out of nowhere, your first reaction is likely to "put it on the card." While this puts a band-aid on the situation at the time, it will only wind up being a financial nightmare down the line once it's time to literally pay the price. Therefore, it's always a good idea to have an emergency fund set aside for disasters so that you don't have to put them on credit.
Communicating about credit is especially important for individuals that share accounts, such as spouses. If you happen to use the credit card for lunch expense, be sure to either show the log to your spouse or directly let them know so that they are on the same page. Miscommunication can and often does lead to major and unnecessary kinks and late payments.
Logically Think About Your Purchases
Simply enough, if you know you won't be able to afford the purchase when the credit card bill comes, or even if you have doubts, it's probably a good idea to just move on. Only swipe and make purchases for things that you know for a fact that you will be able to pay off down the line. Get out of the habit of living in the moment and start thinking about the "laters" and "what ifs."
Make Frequent, Prompt Payments
Many people think of their credit card owings as a lump sum that must be paid in full by the end of the month before they are in the clear for more spending. However, savvy card holders look at their balances as works in progress; balances that can be etched away at over time. If you have extra money lying around, go ahead and pay off whatever you can on your balance so that you aren't scrambling at the end of the month.
Condense Your Cards to a Minimal Amount
The more cards you have in your wallet, the more likely you're going to wind up in a financial mess; that's a fact. Keeping more cards comes with more micro-management, and this is where many people goof up and can't keep up with all of the bills and transaction histories. As a rule of thumb, keep one credit card for primary use and another for a backup and should, in theory, only be used in dire situations.
Don't Pay Attention to Your Limit
Lastly, don't look at your credit cart limit as a goal that must me accomplished. If your credit limit tops out at $20,000, this is not a personal challenge that you should take on to use it all up. Only spend what you can afford. Leave the rest of your credit allowance for dire emergencies.
Credit Help Cards is the leading credit card finance provider in USA fully dedicated to help its customers acquire a credit card regardless of credit history. They design and develop customized no credit credit cards, bad credit credit cards, and good credit credit cards. Voted the best for "Quality Customer Service; Best National Credit Cards Service" by thousands of people, their finance experts focus in providing its customers information and various tools available for different credit card offers, help them to choose the best that fits their goals and needs.
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