How Your Credit Card Can Work For You


Many people struggle to manage their credit card balances while keeping their credit score in good standing.  If you apply some of the very simple tips and tricks outlined below for managing balances and monitoring your credit score, you will find that they can be an extremely useful.

Instead of slaving away in service of your credit master, you can instead get your credit card to work for you if you’re diligent and pay attention to detail.  In reality, most people end up in debt because they simply don’t take the time to pay enough attention to the details!

Use these simple and easy tips to make your credit card work in your favor:

1.    Know your due dates

Timing is key when monitoring and managing credit.  Paying your bill on time is obvious, however, not many people pay their consumer credit card while delaying payment of their other bills:

●    Note your statement generation date.  It’s the same every month.

●    Use your credit card to pay all of your other bills on the first day after the statement date.

●    These charges won’t show up due on the credit card bill for another month.

2.    Make payments in lump sums

Many people use a technique of putting large payments on a credit card and then using the cleared limit to make other bill payments.  Once you make a lump sum payment before the next statement period:

●    This amount will be reflected on your statement.

●    You will be able to use the card with the freshly cleared payment to settle other expenses and debts.  You will also earn rewards points for paying your regular bills without incurring additional interest debt.

3.    Include the interest with your minimum payment

Instead of only paying just the bare minimum payment amount stipulated on your statement, consider paying that amount plus the amount of interest shown as interest accrued for that month. With this technique you will be able to cut down recurring interest expenses.  Although you won’t be entirely debt free just yet, you will come closer each month to completely settling your credit debt.  Slow and steady wins the race.

One Additional Bonus Tip to Consider

Banks are very competitive when it comes to the credit products that they offer to customers.  Due to this fact, it is fairly easy to find one that offers better interest rates.  So it’s a good idea to consider switching companies.

Your credit card should not always be viewed as your mortal financial enemy!  A well-managed line of credit can be a very useful tool when urgent financial needs arise, especially unexpected ones. What truly matters is how well you manage the card, which will determine how well you do to successfully repay the debt.

No doubt you’ll find that there is no need to be an accounting guru to get your credit card operating in your favor.  Simply understanding a few basics of credit cards, interest, and due dates will help everything to fall gently into place!

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