Career & Living, Life

How To Manage ‘Ya Credit Card Like A Boss

There a convenient method of paying for goods; online shopping, Netflix account and even holidays. The credit card has in fact become such a popular way of paying that who even knows what cash is anymore. And guess who has the worst credit card habits? Millennials. That’s right, in a recent study, it revealed that 52% of us are engaging in expensive credit card habits. I mean, it’s easier to carry a little plastic card in your wallet and swipe it wherever you need than it is to carry cash and actually calculate how much you’ve spent on the spot. That’s why a lot of people exceed their credit card limits or overspend too soon; they simply lose track of their spending and end up in huge debt. So rather than maxing out your card and throwing you hard earn cash away, here’s how to keep your credit spending in control.

Avoid Paying The Monthly Minimum

A lot of people use their credit cards whenever and wherever they can. After that, they pay off the minimum monthly fee and believe they’re good to go. However, when you’re only paying the minimum fee, you’re not actually making any progress towards clearing your debt whatsoever. Instead, you’re only managing to accumulate additional interest rates on your credit card and increase your debt. Instead, try not to overspend and pay off your monthly bill in full. If you’ve spent a $100 and you only paid the minimum fee, the credit lenders can charge you with extra 19% interest rate if not more on the entire $100. By paying the bill in full, you avoid additional interest on the amount that’s due.

Don’t Pay Your Bill Too Late

Another thing you should try, aside from paying your bill in full, is to pay it on time. Late payment fees are high and if you don’t have a good reason to be late with your payments, you should avoid it altogether. Aside from costing too much, late payments can really hurt your credit score. As a matter of fact, 35% of your credit score consists of payment history and if you’re late with every payment, your credit score will diminish in no time.

Don’t Max Out Your Credit Card

Most people are quite carefree when using their credit cards, up until the point where they exceed their limit or max out their credit cards. Going over the limit leaves you exposed to over-the-limit fees, while maxing out your credit card increases your debt, triggers a penalty of additional 30% of interest rate, increases your minimum payment and renders your credit card useless. However, you can always consult companies such as OnDeck and secure a loan to take care of your finances. After all, it’s easier to pay off a loan than to struggle with interest rates on maxed-out credit cards.

Always Check Your Credit Report

The most important thing you should do to stay in control of your credit card is check your credit report regularly. A credit report gives you insight into your payment history, transactions and your personal credit score. It allows you to check for any mistakes or anything that’s out of the ordinary. If you indeed spot anything, you can inform your provider so they can correct the mistake.

Image Source: The Front Porch.

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Crazy about travel and writing about it. Working in the bank sector for almost ten years, I've got you covered on all things money and finances.

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