A lot of people are adopting the traditional ways of saving money because of the strict rules and regulations of banks in the U.S. High credit card fees, high-interest rates, and unsatisfactory customer support service are a few things that make people go away from banks.
There were a few attempts made by the U.S government in the past to overcome these issues. The Credit Card Act (2009) was one such legislation but many people think that it does not offer them an all-inclusive solution.
Are you worried? Don’t worry because, in today’s article, we are going to show you a few ways through which you can outsmart your credit card issuer and use your credit card wisely. Read on!
Don’t carry a balance
When it comes to the use of credit cards, this is an expert tip – “Don’t or never carry a balance.” As long as you make timely payments every month, you will avoid paying in fees or interest.
Stick to A Budget
It is important to create a budget, which highlights your income and monthly expenses. This helps you outline the amount of money available for spending and the amount of debt you would manage to take on and repay.
Keep a Clean Credit Card
If you can’t pay in full every month but you are still decreasing your debt steadily, then you can take advantage of your credit card offers. However, you don’t want a raise in the debt load.
If you are in debt already with one card, you need to pay that card off before you open a new account. In case you have multiple credit cards, you must pay on your existing debt and make sure there is no interest on new purchases.
So, you must make non-essential purchases while you have credit card debt. If you think you are disciplined and can’t limit your spending when paying with your credit card, then you should pay using a debit card or cash.
Get Cash Back for Your Rewards
Getting a statement credit or depositing money in your bank account is an excellent way to use your reward points. For example, you can use cash to pay your bills and/or add it to your balance. You can also decrease your credit card debt using the cashback for your rewards.
Narrow Your Spending
When it comes to credit cards with rewards, it is not difficult to forget the significance of money. So, the more cards you utilize, they accumulate fewer rewards per card.
You might want to emphasize all the spending on a credit card, which has the best-value in regions or areas where you spend mostly rather than spending purchases via multiple cards. This makes it difficult to earn rewards. So, the fewer the cards, the more rewards.
Pay Your Bills On Time
This, perhaps, is a universal tip to use your credit card wisely. We think it is extremely important to pay bills on time. This way, you will avoid late fees. Also, keep in mind that your credit score mostly depends on your on-time payments