Using credit cards wisely to keep up your financial reputation

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 » Using credit cards wisely to keep up your financial reputation

Using credit cards wisely to keep up your financial reputation

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

Credit cards are extremely useful and handy pieces of plastic, albeit only when used wisely. Unfortunately though, people end up obtaining credit cards without understanding the nuances of using them wisely and end up with insurmountable debts, way beyond their means of repayment. This not only throws finances off balance, but also has an adverse impact on the credit history of the person. Here are some key tips that can help you manage your credit cards wisely and keep your finances in check.

Pay off on time

The underlying rule when you have credit cards is to clear off all your dues on time. It is recommended that you clear off the entire balance on the cards on a monthly basis. However, if that is not possible, pay off the minimum amount due on the card to prevent late fees and other financial charges. Not paying your dues on time regularly will lead to the credit card company increasing the fees and interest rates on your credit cards making it tougher for you to maintain it.

Do not exceed the credit limit

It is imperative to keep a check on your spending limit before you set off on a shopping spree. Most people end up exceeding the limit offered on the card, thereby attracting over-the-limit charges that are pretty high.

Limit the number of cards

Having more than six cards in your wallet can cause more harm than good. The higher the number of cards in your wallet, lower will be your credit score. The credit score dips further every time you apply for innumerable cards at the same time or close multiple cards simultaneously. Choose wisely and only have cards that have favorable terms.

Don’t shop for rewards

Shopping using your credit cards just to avail the rewards on it is sheer foolishness. You will have to spend up to a certain limit before you are entitled to redeem the rewards and most often than not, the limits set are so high that you will find it tough to repay the outstanding amount.

Negotiate for better rates

If you have been using the credit card for a long time and have a good credit score, it is time to negotiate with the lender to get the interest rate lowered. Credit card issuers favor people with good credit score and hence will be willing to negotiate in order to retain you as their customer.

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:

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

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

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... 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!