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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.
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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.
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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:
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.
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The chances are that you are fully aware of the benefits of scheduling. It can help you with:
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.
So, next time you find a buy now pay later service pretty tempting, always remember that scheduling is what you really need.
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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! :)
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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.
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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:
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.
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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,
Staying way below your credit limit means you have other sources to fund your golden retirement.
On the other hand, high utilization means
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.
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.