Are you a secured credit cardholder? And is responsible management of your current line of credit one of your main goals for the year? If your answers to these two questions are YES and YES then, we advise you to keep the following secured credit card tips in mind:
Never pay your bills late. Did you know that missing out on your monthly payments can be disastrous not only to your credit history but also to your personal finances? That’s because paying your bills late will not just inflict damage to your credit profile. It can also cost you a great deal of cash, in the form of late payment penalties and other surcharges.
Hence, if you wish to keep your credit payments minimal and to maintain a high credit rating then, you should resolve to keep up with your secured credit card bills. If you find it difficult to remember your due dates; we advise you to set up personal alerts and reminders in your mobile phone and even in your portable devices. Better yet, sign up for automatic payment arrangements with your bank so that you won’t have to worry about missing out or skipping on your bills, anymore.
Always submit complete payments to your card issuer. It is also important that you pay your bills in full. Keep in mind that submitting just the minimum amount due can cause your interest charges to shoot up. So, to avoid getting into an even bigger and more serious financial mess; you should strive to settle your financial obligations, completely.
Keep a tab on your credit card charges, so that you won’t go overboard. Bear in mind 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 slide down. And that’s not all. Such habit can also cost you substantial funds, usually in the form of overdraft charges and declined transaction fees.
This means that if you’re keen on maintaining an excellent credit history and if you wish to keep your monthly payments low then, you should resolve to use just a reasonable percentage of your credit limit.
Be mindful where you share or disclose your credit card account information, especially when purchasing items online. After all, not all websites and online forms are equipped with excellent features that will help ensure the confidentiality of the information you will disclose on them.
Avoid managing multiple card accounts, even if you think you can afford to handle them at the same time. Always remember that managing several lines of credit increases your risk of incurring a huge credit card debt you might eventually find very difficult to pay back.
Hence, we advise our readers to apply for and manage AT MOST TWO credit accounts, which could be a combination of credit cards and personal loans.
We sincerely hope that the secured credit card tips we have discussed above can be instrumental for you to achieve your goal of handling your existing card account, in the best way possible.
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 the best secured credit cards. She regularly contributes articles to Secured Credit Card Site to provide readers secured credit card tips as well as the latest trends in financial management.