How to Wisely Use Your Credit Cards
January 17, 2025 | Posted by: Sherry Corbitt
Credit cards have often been seen in a negative light, based on the consequences that come with them. It is true that they certainly can lead to poor financial issues, based on the decisions you make with them. When you use credit cards wisely, though, there are many great things that they can offer to you. Consider some ways that you can take the most advantage of your credit cards in practical ways.
Have Limits Set
Using a credit card is very convenient, as you can make purchases without worrying about having the right amount of money with you. Although you can freely spend with a credit card, it is vital to have limits. A credit card, although very useful, can become a very toxic asset. If you are not careful, you can easily binge spend, which can consequently lead to debt. You need to know what money you have and can pay for, so ensure your income is considered when using your credit card. When you have this in mind, you can then estimate a limit of how much you spend on your credit cards. You can then be sure that you can pay off your credit card bills at the end of the month.
Always Pay Your Bills on Time
Having to pay your bills at the end of the month can be stressful. Nothing is more stressful though than paying your credit card bills late. Not only will this disorganize you, yet you can be charged more. In addition, you can be charged an interest rate for paying past the due date. This is a waste of money, which can be avoided. Make sure that you have a plan set in place to pay off your monthly credit card bill. Try aiming between 3-5 days before your bill due date to pay. This extra time can allow you to ensure that the bank has received it and that there is no chance that you will be charged a late fee.
Know Your Credit Card Terms
Knowing what your credit card terms are is essential to avoid paying any unnecessary fees. Every company has different terms for their credit cards, so you should double-check with your bank to verify their specific conditions. You will discover their interest rates and can further knowledge yourself on how you will be charged on your account. Having this new comprehension will help you to use your credit cards without having any uncertainty.
Check Your Account
Many people today do not take the time to go over their credit card accounts. You may believe that it is not essential to look it over that often, yet there may be incorrect payments that are listed. You may have either been overcharged for something, or something that you did not purchase was somehow put on your card. Even if you happen to find this discrepancy later, such as the next month, it may be too late to retrieve it. Ensure that you go over your credit card bill and make sure that everything on the account is correct. If there is anything incorrect, you can get it fixed before your bill payment. This will ultimately save you money, which you wouldn't have received otherwise.
Take Advantage of Benefits
Credit card companies offer a variety of different benefits. Some of these benefits can include purchase points, return protection, and travel miles. Purchase points are benefits that lower a selection of items at a handful of stores. These points lower your cost on the items, which can help reduce your overall purchase amount. Having return protection is a great feature, as it allows you to return items that you have purchased much more quickly. Of course, these returns may only apply to a handful of stores, so it is important to confirm. A very convenient benefit that may be with your credit card company is travel air miles. If you are a part of the program, then you can gain points when you make purchases. The more purchases you make, the more points you will accumulate. Once you have enough, you can get flights and other travel expenses paid for. These are only a few examples of some benefits that credit card companies provide. Contact your company and confirm what benefits you are eligible for.
There certainly are various benefits that come from using your credit cards wisely. When you are careful when making financial decisions with your credit cards, you definitely can have the best outcome.
If you have any questions about how to use your credit cards wisely, please contact me!
Sherry Corbitt, Mortgage Broker
Sources
-Shuford, Jeff (2021). 10 Tips to Get the Most Out of Your Credit Card. Life Hack. Retrieved from https://www.lifehack.org/481417/10-tips-to-get-the-most-out-of-your-credit-cards
-Johnson, Holly (2020). Eight Tips to Make Credit Cards Work For You, Not Against You. The Simple Dollar. Retrieved from https://www.thesimpledollar.com/credit-cards/how-to-use-credit-cards-to-your-advantage/
-US Bank (2020). 5 Tips to Use Your Credit Card Wisely and Steer Clear of Debt. Retrieved from https://www.usbank.com/financialiq/manage-your-household/manage-debt/use-credit-card-wisely-steer-clear-of-debt.html
