6 Tech Savvy Tips About Credit Cards You Need To Learn

In todayâ€™s world, getting your first credit can be considered a huge milestone. Anyone who is 18 or above can apply for a credit card easily. It is an incredible and helpful financial tool that can help you establish an excellent credit score or create a mountain of debt if used unwisely. Just because a person has used not their credit card responsibly, does not mean having a credit card is bad. A credit card provides many advantages and can help you pay expenses when youâ€™re short of cash or funds in your bank account.

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This useful tool can also help you manage your finances and build a credit score that can help you earn benefits in your future. Credit cards offer a convenient way of payment and even offer a 0% interest rate on certain purchases. But if you are not careful with your spending, it can also lead to high interest charges, debts and can affect your credit score drastically. It also provides security features if your card is stolen as it can be easily replaced compared to losing cash.

a. Builds Credit Score
Using your credit card is an excellent way to build and boost your credit. It is important to be careful and use your credit card wisely. Making on-time payments in full can improve your credit history while late payments or half payments can improve your credit score negatively. It is important to stay well below your credit limit so ensure that you track your credit score and monitor your progress.

b. Needs and Wants
Be a savvy spender when purchasing through your credit card. By making rash decisions in your purchases it can do you more harm than good. Using your card for emergency situations such as bills, rents, etc first then consider buying something that you want. Going overboard with your purchases can risk going into debt. Setting up automatic payments can help you get your credit score in check and avoid spending beyond your means.

c. Redeem Rewards
A great way to make the most of your credit cards is to redeem rewards and cash-back offers on purchases. In order to do that, you must first familiarize yourself with the reward program so that you can spend accordingly. There are different types of reward cards available that can fit according to your lifestyle and needs. It is important to note to avoid reward cards that have an annual fee as you may lose more money than gain any. Maximize your cashback earning by spending the categories that earn the most reward but be careful so that you know you can pay off the debt.

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d. Use your credit card strategically
While owning a credit card provides a great financial benefit, it will most definitely lead to increasing debt and a negative impact on your credit if you are careless and irresponsible while making decisions. A few tips to help you keep your credit in check:

On-time payments – Late payments can lead to late fees which increases your debt and affect credit score
Pay in full amount – Paying off your credit bill in full will help you avoid any high-interest charges that are levied on your card.
Stay Below Credit Limit – Aim to keep your credit utilization ratio below 30%.
Track your purchases – Each month check your billing statements to point out any unauthorized charges or errors. If you find any you can report them and clear them up easily.
Secure cards – Ensure that your credit card has a lock and unlock feature that can save you money if your card gets stolen.

e. Know your fees
When you opt for a credit card, depending on the card you choose, there could be a lot of fees involved in your card. The most common fee is the annual fee is present in almost all types of cards. You can also consider cards for foreign transactions so you are not charged for purchasing anything abroad. A great example as mentioned earlier is avoiding late fees and making full payments. You can also skip cash advance to avoid the cash advance fee.

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f. Download the App
Most credit card services provide their customers with a mobile application so that they can keep a track of all their payments online. The benefits of this feature is that you have easy access to your account, balance, credit balance, online payments, reporting stolen or lost cards and so much more. Even though a web browser is sufficient to log in to your credit card account, a mobile application will make it easier and faster for your convenience.