Having a credit card in your wallet is more of a trend rather than a necessity. In fact, this plastic money is so popular that many people weigh the status of their peers based on the number of credit cards they have in their wallet.
While this is indeed a trend that cannot be curbed, one cannot deny the hassles that come along with it. Not using your credit cards wisely can weigh you down with debts you will not be able to clear off in a short span of time. The good news, though, is that managing credit cards and the debts that arise out of it can be made easy if you have a few simple tips on hand.
First of all, keep track of all your credit cards. This is compulsory for people who hold cards from more than one bank. It is important to know the billing cycle of each card and make payments on time. Skipping your payment on even one card can prove to be costly in the long run.
Think twice before you purchase anything using your card. having a card on hand does not imply you can go about picking anything you fancy. If you continue this trend, you will end up with a huge debt in a short span of time. Use the credit cards sparingly and only opt to spend on things within your reach. Remember, you will have to repay every dollar spent on making your purchases along with the interest on it.
Do not go beyond a third of the limit made available to you. Not only will be a burden to repay, but it will also go into your credit report. Your credit score is calculated based on the current debts on your name. A good credit rating, which is mandatory for the approval of every loan you apply for, can be established only when you stay well within the prescribed limits.
There are chances that you may face some financial crunch at some point of time. in such circumstances, you may not be able to make your payments on time. Call you bank and keep them informed about your situation. Many banks will oblige and be willing to make exceptions. Most of them will consider waiving off the late charges and other penalties if you keep them in the loop.