Credit Cards are important part of many people’s lives. When used correctly, they are a very effective and a great way to pay for the things we need. However, it can be easier to fall into the traps that owning a credit card can often give you. Remember that if you’re applying for a credit card from your local bank, they will look at your financial history so it’s important that you do your best to keep it as positive as possible. Here is some friendly advice from one credit card user to another on how best to keep your credit score high and your stress low
Careful Not To Overlook The Basics
Overlooking your billing statement is an error that you want to avoid. There is a possibility in missing payment on the due date if you do not go through the billing carefully. It is also possible to overlook essential pronouncements about changes in credit card policies. Besides, this important invoice is always the initial indication of any fraud on your credit account. Read the statement in detail to ensure that the charges are correct. Charge-offs of cards may be one of the most terrible things that can affect your credit scores. This will stay on your report for seven years. It can also affect getting loans and plastic cards in the future. Missed payments for six months can generate this charge-off condition. Avoid delinquent or late accounts to avoid this status. Losing your card can cause extensive inconvenience particularly for credit card holders with high credit limits. Take the necessary precautions to prevent your credit card from being stolen. In case the card gets lost, do not delay the act of reporting to the credit card firm. This will help you stay away from liabilities for deceitful charges.
Other Things to Remember
Charging balances beyond 30 percent of your credit limit is not healthy for your credit scores. Getting very near the credit limit paves the way for over-the-limit fees and penalties. Interest rates become exorbitant once you go beyond your ceiling. Always have your credit score in mind since this is the key to continued use of the card. Applying for too many credit cards that you may or may not be using is also an unforgivable blunder. At the same time, the act of cancelling accounts may not be wise at all. This can cause you to lose points that will harm your scores. Failing to figure out the terms and conditions contained in the agreement is another mistake. Be sure to understand and go over the policies every year. Proper comprehension of these provisions will give you more control over usage of the card. Lastly, be a prudent credit card user at all times. Use cash whenever possible and avoid unnecessary purchases.