If you’re a housewife and you wish to know how you can responsibly use your secured or unsecured credit cards then, we encourage you to remember and employ the following credit card management tips:
Keep up with your credit card bills. Did you know that the best strategy to effectively use your existing line of credit is to simply pay your monthly dues completely and prudently? That’s because settling your bills in full and on-time, each month, will not just help you build and maintain a solid credit profile. It can also help you avoid incurring pesky fees and charges that might eventually eat up a significant percentage of your household budget.
Suppose you find it difficult to remember when your bills are due. What can you do to keep up with your financial obligations? You can simply set up personal alerts and reminders in your mobile gadgets. You may also mark your personal organizer and your office calendar with your due dates. By doing so, you can prepare the necessary funds for you to submit complete and on-time payments to your credit card issuer.
Use just a reasonable percentage of your credit limit. Don’t max out your secured or unsecured credit cards. Always remember that spending beyond the limit or cap imposed on your account can cause your debt-to-limit ratio to rise and your credit score to drop. And that’s not all. Such habit can also cost you a great deal of cash, in the form of overdraft charges and declined transaction fees.
Hence, to maintain your high credit rating and to avoid making substantial payments on unnecessary charges, you should resolve to use just 25% to 40% of the limit set on your credit card. And make it a habit to check the available balance on your account, before charging your purchases and bills on it.
Live up to the terms and conditions of your card program. Another reason why cardholders incur huge penalties is because they fail to abide by the stipulations of their secured and unsecured credit cards. For instance, some abuse the balance transfer and cash advance features of their lines of credit; while others deliberately skip or miss out on their monthly payments.
Keep in mind that such poor credit habits will not simply inflict damage to your credit history. They can also be the reasons why your subsequent applications for credit programs, like personal loans and additional credit cards, will be turned down.
This is why we suggest you stick to the provisions and restrictions found in your contract. And make it a habit to review the stipulations of your credit agreement, from time to time. After all, such activity will strengthen you decision to live up to the terms and conditions of your credit card program.
Always ask for receipts. After all, this will help you monitor your credit card spending. At the same time, this tip can lead to the early detection of fraudulent or unauthorized charges found in your monthly billing statements and even in your annual credit report.
About the Author
Emma Lee is a financial consultant and a freelance writer. She has more than 15 years of experience in helping consumers find and manage the best secured and unsecured credit cards. She regularly contributes articles to Secured Credit Card Site to provide readers the latest information about various card programs as well as the latest trends in financial management.