Most people agree that using a credit card to pay for everyday purchases is a smart idea. After all, Card is safe, convenient and useful. Plus, if you're responsible, you'll also build a solid credit score with every swipe.
But do you really make the most of your Card experience? Here are 7 credit card tips that should be known by credit card users.
Credit card Tips What You Should Know
1. Balance Alerts
Can help you keep your expenses in check, keeping an eye on how much you spend on your credit card easier than ever. Most issuers allow you to set up balance alerts so you will receive text and/or email whenever your total spend hits a certain limit you have set.
Sign up for this service so you'll get a notification when your credit utilization ratio is near the 30% mark - this way you'll know to make payments before you endanger your credit score.
2. Spending analysis tools
One feature of online banking that is often underestimated is Spending analysis tools, now offered by most credit card issuers. It allows you to see details of how much you spend with your Credit Card in different categories (Restaurants, online sites, etc.). You can usually choose to view this on a per month basis or look at your spending patterns over time.
Be sure to look around for this tool when you log into your online banking card platform. This can provide some helpful insights into where you do a good job of sticking to your budget, and where you may need to cut back.
3. Mid-cycle payments
Every month, your credit card issuer sends your account reports to three major credit bureaus. Included in this report is your balance, which is used to calculate your credit utilization ratio.
However, this data is not necessarily sent through after you make your monthly payments it can be reported at any point in the billing cycle. If you tend to charge many of your cards every month, getting into the habit of making mid-cycle payments will continue to utilize your low credit ratio. This, in turn, will help 30% of your credit score be determined by the outstanding amount.
4. Shopping through rewards malls
If you frequently shop online for a large amount, you should definitely use your Credit Card Shopping through rewards malls whenever you place an order. This is an easy and convenient way to earn tons of extra rewards for every dollar you spend. And do not assume that your particular publisher does not offer these benefits. Even if it's not widely advertised, the look-a bit next time you visit your credit card website. You will probably find some kind of rewards mall or portal that you never saw before.
5. Moving your due date
Missing Credit Card payments is bad news for your FICO credit score because 35% of it is determined by your history by making a timely bill payment. If your credit card bill arrives at a convenient time for a month, consider switching it. You can usually do this online or by placing a call to your publisher. one simple move can go a long way toward keeping your good credit.
6. Strategic swiping
Using only one high-reward credit card for all your expenses is a good way to rack up many points. But getting some cards that get big in the merchant category you spend the most in and then using them strategically is a great way to pump up the volume on the rewards that you are collecting.
For example, if you spend a lot on gas, food, and travel, getting both Chase Freedom and Chase Sapphire Preferred Card is a smart idea. You can use Chase Freedom at SPBU when they appear as 5% category and Chase Sapphire Preferred Cards when you are traveling and eating. Then, transfer all the points you tortured up on gas expenditure with Chase Freedom to your Chase account and Sapphire Preferred Card bingo - you've got a boatload of points to use towards your next vacation.
7. APR promotions
If you've got some Credit Card debtor need to make a big purchase that you do not have the cash to cover, utilizing April promotional credit cards can be just the ticket. By choosing a card that offers a 0% long rate on purchases or balance transfers, you can avoid the upcoming sky-high financial costs by using your regular card.
Just watch out for balance transfer fees, and be sure to make your payments on time. If you do not, your deal may be canceled and you could end up paying interest after all.