5 Amazing Tips to Make Your Credit Card Work for You
Credit cards are frequently known as the root of debt and financial “slavery.” This is a profoundly subjective view propagated by our lack of prudence, misinformation or ignorance. The truth is, your credit card can work for you. Through prudent management, you can acquire stuff that you will not be able to afford on a short term at a fair interest rate, improve your credit rating, and get benefits through reward points.
Here’s how to make your credit card word for you.
1. Make Full Payments On Time
Always ensure that you settle all your credit card bills on time. This will help you to avoid unnecessary penalties and excess interests. In addition, also assist you in building a good credit score.
We understand that you are a busy person and how taxing it is to keep up with all these payments. Therefore, we recommend that you set up automated payments from your bank. You will also need to have alerts and reminders on your calendar to help follow through on these payments.
2. Know Each Card’s Billing Cycle and Payment Due Date
To make on time payments, understand the billing cycle and the payment due dates of your card. Here’s the deal, every month on a particular day all charges for that month are closed out and a statement is sent to you. This typically occurs every 25 to 31 days. On the statement, the amount indicated has a payment due date which ranges from 14 to 21 days from the date of the report. Any charges incurred in the overlap period are presented in the following month’s bill.
Payments made on or before the payment due date are not subjected to interest charges. Make the credit card work for you by keeping track of these dates and ensure that you make full payments at the right time, to minimize on interest charges and avoid penalties.
3. Limit Your Usage
You can use your credit card to limit your expenditure. To achieve this, set your credit card limit with the preferred amount by communicating with the card company. Credit card companies also support such moves by their clients primarily to help reduce the impact of fraud. By capping your limit according to your planned expenditure, your credit card will work for you. How? By managing your budget or better still, you can limit how much a dependent can spend every month.
4. Use the Card only for Planned Expenses
This is simple but often the least used principle of credit card management. Avoid carrying your card when you are heading to places where the opportunities and urge for impulse spending are high.
Use the card only for the “big” stuff and learn to project your bills before the statement gets to your inbox.
5. Earn from the Benefits
Credit card companies often extend loyalty points to their clients and have reward schemes for their most loyal customers. These advantages include hotel and restaurant discount coupons, extra frequent flier miles as well as many other add ons. To make your credit card work for you, use these opportunities to cut down on other costs that you frequently incur.
In conclusion, to make your credit card to work for you, you need to do the following. Understand the billing cycle. Be discreet on making timely and full payments and limit your usage according to your needs. Ensure that you use the card only for planned expenses and take advantage of promotions and loyalty reward schemes.
Do you currently have a mountain of credit card bills? As the best moneylender in Singapore, we will be able to help you with your problem.
It will be easier for you to manage all your bills if you get a loan to clear all outstanding amounts. Credit cards have high interest rates if you do not clear it all within the month. In addition, having too much outstanding credit card unpaid balance will affect your credit score. By getting a loan from us, it will be easy for you to manage as you will be certain that you have made the necessary payments for the month. In addition, as a licensed moneylender in Singapore, we provide monthly loans to you. Do note that many moneylenders are offering weekly loans which will not be manageable at all! You only receive your salary once a month, how are you supposed to make weekly repayments to a loan? Furthermore, these weekly loans have heavy penalty if you do not make the required payment each week.
If you need a loan, always approach a legal and licensed moneylender! Contact us if you have any questions about taking loans. If you need a loan, do fill in the application form and we will contact you as soon as possible with regards to your loan application.