Credit Tip Tuesday #102-7 Credit Card Tips You Wish You Knew Earlier

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Swiping your credit card every other day is one thing but doing it mindfully is another.

In fact, when you are a credit noob, you tend to do the former rather than latter. However, if you want to improve your finances and credit profile, the right credit card usage is the key!

It means that using your credit card in a way that:

And, overall is more suitable for your money goals rather than being in an otherwise situation where you may struggle financially to live a decent life with a limited income.

Therefore, below are some of the credit card tips to make better moves for your future and not hit a bad credit score in any way.

1.  Keep An Eye On Your Credit Score!

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Image Credit: Pexels

A check on credit score? That’s a given! We know you were expecting this to be the number one tip. :p

There’s one thing that never gets old in this world.

Everyone calls it “myths.”

Yes, myths never get old, be it in your personal life or related to goals you want to set for your post-retirement life.

Similarly, when it comes to tracking your credit score, many would tell you that it’s a grave sin to your financial matters.

However, it would be worth noting that credit score inquiries are of two types, namely:

Hard inquiry often dents your efforts to maintain a good credit outlook. On the other hand, the soft inquiry doesn’t do the same to your money-related efforts.

Moreover,

You can always keep track of your Equifax credit score using ways that are fruitful instead of ruining your financial health!

So, why not make the most out of this opportunity instead of moving ahead with just your intuitions?

It will keep you updated about:

Also, you can request for fixation in any of the above mentioned points so that they don’t keep hurting your credit score and everything in between.

2.  Let The Right Credit Card Rehab Your Credit Score

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Ever heard someone say,

It’s not the amount of money you have but how you choose to manage and spend it that defines your financial health.

This simply means that the resources you have can be utilized carefully but the same resources will always hurt your financial goals if you don’t know how to use them the right way.

The same is the case with a secured credit card – it will always rehab your credit score and even boost a bad one in every way possible.

It happens because:

  • The credit limit aligns with your financial health
  • You steadily build your credit history
  • You invest the saved money in something useful
  • You pay the lowest interest rate

Lastly, you are able to record yourself in your lender’s good books, which helps you get the credit-friendly offers on loans and everything in between.

And, we are not even on the best part yet - there’s no credit score requirement to get your secured card. Literally! So, that makes it the top option for people struggling with poor credit.

3.  Schedule Your Purchases

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The chances are that you are fully aware of the benefits of scheduling. It can help you with:

  • Increasing productivity
  • Stabilizing mental stability
  • Clarity in creating goals
  • Meeting deadlines, etc.

Similar is the case with your credit card. How so? Well, when you schedule your purchases through your credit card, it also turns out to be a pretty good deal.

  • It helps with the billing cycle and makes sure you never miss a single payment!
  • Maximizes interest-free periods and helps with an efficient credit building!
  • You keep your outstanding balance nill to enjoy the above two perks.

So, next time you find a buy now pay later service pretty tempting, always remember that scheduling is what you really need.

4.  Get Strategic With 15/3 CC Payment Hack

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If you have been thinking that you want to spend fairly without hurting your credit at all, we have got this 15/3 credit card payment strategy for you!

According to this hack, you will have to

However, the credit card payment should be made on the 15th of every month and 3 days before the actual/due date of the payment.

It results in

At first, you might feel like this strategy is overburdening you, but as soon as you start reaping the benefits, you are going to stick to it for sure.

In fact, it will urge you to pay on time every time! :)

5.  Don’t Wait For The Due Date

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Image Credit: Pexels

Are you a procrastinator? Do you often push things to the very end? Are your finances in trouble due to this habit? This tip is for you!

So, what does clearing bills before the due date do for you? Here’s what it means:

On the other hand, paying bills on the last date means you are unable to keep up with what you had borrowed earlier, hence the lender might track your activity more closely.

In fact, when you miss a payment or make a late payment, not only your credit profile will suffer but so will your next budget.

 

Moreover, there are higher chances of panic spending as all your financial planning for the next month or other expenses are also affected.

6.  Make Auto Deduct Your Best Friend

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Once you automate your direct spending from your account, you will see a significant change in your monthly money management.

The reason is that auto deduct! Here’s why you should automate your payments:

  • It will deduct only mandatory amount at the start of the month
  • Lets you know how much you need to save
  • Doesn’t let you ruin your loan management goals

And so on. In short, if you feel like your savings account isn’t working for you, then this definitely will.

 

Moreover, it can help you create a good saving budget as you know all that you have left after the deductions is you to freely yet carefully spend.

7.  Don’t Let Your Credit Utilization Go High

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If you ever thought that not making the most out of your credit limit is actually doing bad to your credit score, then you are definitely mistaken.

Instead,

  • Low credit utilization means a higher credit score which as a result can give you more opportunities to work on several other things.

 

Staying way below your credit limit means you have other sources to fund your golden retirement.

On the other hand, high utilization means

  • Money payers take you as a potentially risky customer
  • You are spending more and paying less of what you owe
  • You might be charged with high-interest rate

And the reason why you are mostly charged high fees is that it helps lenders to keep your credit profile in check as they don’t want to risk their money.

Final Thoughts

Making the right choices related to your credit card means you already know how not to let it go against your financial life.

Therefore, keeping yourself updated about the essential tips always helps instead of the other way around.