Top tips on how to use your credit

cards responsibly

Credit CardsCredit cards have become a popular commodity these days due to its convenience. You can buy things with it without risking bringing any cash. However, if you are a first-time credit card owner, it’s so easy to get carried away with its use. That is why we have come up with some great tips on how to use it responsibly and be on your way to a brighter financial future!

Building Your Credit

PAy on timeOne of the premise of using a credit card for bad credit is to build your personal credit history to show creditors or lenders that you are responsible enough to make payments of your purchases on time.

INcrease your credit limitUsually credit card companies automatically increase your limit after 6 months. However, if this isn’t the case, call your credit card company to negotiate an increase. This could help you when you take out loans because lenders have a baseline (comparable credit) with which to compare the amount you are able to pay monthly.

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PAY in fullCredit card debt is the primary reason for filing bankruptcy and in order to prevent this, it is highly advisable to pay your credit card bill in full so your debt doesn’t incur exorbitant interest fees. Moreover, it increases your credit score because it shows low credit utilization especially if it is less than 35% of your credit limit.

Create A BudgetFactor in your credit usage when you are making a budget so that you already have allotted money to pay for your credit card bill and build up on your savings.

UNderstand the card actAccording to the

Credit Card Accountability Responsibility and Disclosure Act of 2009, credit card companies are mandated to give you an advance 45-day notice before any changes to your credit card is made to put an end to unfair practices. Know your rights so you can protect yourself.

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