Effective ways to help make the most of a credit card

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Effective ways to help make the most of a credit card

Effective ways to help make the most of a credit card


Updated: November 14, 2018

The content is accurate at the time of publication and is subject to change.

The general idea of owning a credit card is to gain the ability to make purchases without worrying about immediate payments. In many cases, mortgages can also be paid off minus any problems with a credit card in hand. Generally a credit card company issues cards to individuals who have a clean record as far as their account history is concerned. When applying for credit cards, customers may want to check the record of the company issuing the card too, avoid companies with bad accounting practises and hidden charges. The key factors that should help individuals make the most of their credit card are maintaining an enhanced credit history, benefiting from offered credit card rewards and being able to transfer credit card balance to other accounts if necessary.

With the credit card holder assuring the issuer of timely payments of the credit given to him/her, using a credit card can be an efficient way to actually manage finances. A revolving account is generated by the creditor to the account holder which allows the latter to benefit of a line of credits. This grants the consumer the ability to borrow funds or make payments if required by a vendor. The user may also employ a credit card as a means of cash advance depending on the issuer`s policy. Users must avoid having a non-credit or bad credit history so as to carry out the maximum potential of the card they hold.

Paying off debts on time assures the creditor a lowered risk involved in crediting an amount to an individual. It also helps to create a good reputation about the account holder among other creditors who can then consider him/her for future loans. A bad credit history on the other hand generates a number of problems not just for the account holder but also for the issuer. While minimizing the chances of the creditor considering the individual for other monetary benefits, it also puts the credit card holder in a mess with the interest rates issued on the card.

Generally individuals who haven`t been able to pay their balance on a certain card look to transfer their balance to another account. Credit card balance transfers may thus be a convenient way to take care of a credit card that has a huge amount of debt on it. Though one can`t really say if it`s a way out, on creating a new account with another company does often give individuals a grace period to cover their debts. The grace period provided may vary from company to company with most issuers offering a duration of six months to a year to pay the balance. The best part of this is that the new company gives the credit card holder the power to pay the balance transferred at a rather low interest rate.

On the contrary, individuals who refrain from having a bad credit history are given credit card rewards as incentives from the company issuing the card. The reward programme is typically different for the kind of credit card held and offers benefits like free flight tickets, gift certificates and other exciting things as reward. Consumers are in this way encouraged by creditors to make more payments through their credit card.

Money being a very important part of most of our lives, it is necessary to handle credit cards appropriately to avoid mismanagement of finances.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!