A credit card can help us to manage our money and have flexibility that might otherwise not exist without it. But it also comes with the responsibility of having to maintain a good credit score and ensure that any payments are made on time. Without giving proper consideration to the way a credit card is being used, it can cause many problems down the line including damaging your credit history and excluding you from financial opportunities in the future.
With a few guidelines, anyone can maintain a healthy credit card and a credit score, helping to keep them in a good financial position for the long term.
Don’t wait for the due date to make payments
If you have a substantial amount of pay off on your credit card, don’t keep waiting until the due date for the payments to be made. You can make additional payments whenever you wish throughout the month, which will help to bring down your balance even quicker and give you a better chance of increasing your credit card faster.
Reports on your credit can also be made at any point during the month, so it could have an impact on your immediate report and credit score.
Pay off extra when you can
Making additional payments on any balance on your credit card is a great way to spend any additional income that you make. Some people choose to spend any occasional game winnings, such as from TheBingoOnline.com, to pay off a bit more of their credit card debt.
While it’s a good idea to save money alongside paying off the money you owe on your credit card, it’s ideal to strike a health balance between these two things – saving a bit of money each month while also paying off any money on your credit card, particularly if you’re accruing interest.
In addition, if you can afford to pay more than the minimum amount each month, then this is a good way to make more progress in paying off your debt.
Clear your balance if possible
Although you might be allowed to keep spending on your credit card without paying it back yet, this isn’t always the best idea and can damage your credit score over the long run.
If you’ve decided to find additional opportunities for extra income, such as Indian affiliate programs or running your own website and selling products, consider whether you should invest some of this into paying off your balance which will be gathering interest until it’s fully paid off.
The sooner you can clear your balance, the better the impact will be to your credit score, helping you to keep it as healthy as possible.
Set up automatic alerts and payments
If your bank or credit card provider offers the option of having automatic alerts, or setting up automatic payments to pay a certain amount each month, then it’s recommended that you take advantage of these features.
Alerts could include a text message or email telling you when your monthly payment is due. Some providers allow you to set up alerts for things of your choosing – such as a message when you have hit a certain spending amount.
Setting up a direct debit or other form of regular payment each month can also make it easier to ensure the money leaves your account on time, and you don’t need to set up your own reminder on your calendar so you don’t forget the payment is due.
Keep checking for charges
Some credit card will already have a monthly fee for you to use the card, whereas others may bring in new charges or only charge you in certain circumstances – such as if you miss a payment.
Keeping an eye on these charges will not only mean that you have a better understanding of what’s going on with your credit card at the moment, but it also means that you’ll be able to notice anything straight away and get in touch with your provider if there has been a mistake.
You can also choose whether to stay with your current credit card or to choose a different one which may offer better rates or fewer charges.