5 Good Credit Card Habits To Maintain a Good Credit Score
Good credit card habits are equally essential to improving a user’s bank credit score. Credit card usage can be equally scary and convenient at the same time. Credit cards are convenient payment method and are secure for online shopping. On the other side, missing a payment or accumulating high-interest debt is enough reason to be scarier as a credit card user. However, the best way to take advantage of all the good things credit cards have to offer without getting hit with any fees and interest or damaging your credit score is to make good credit card habits a regular part of your daily routine.
Good Credit Card Habits To Note
In this article, you will be taken through the good credit card habits to incorporate into your daily financial activities. These good credit card habits, when considered, it will help to avoid high fees and interest as well as avoiding poor credit score. Let’s take a look at some of these habits so you can start incorporating them to your daily financial activities.
Daily Financial Routine To Consider Below
1. Pay attention to you weekly Spending
To maintain a good credit card habits, keep track of your spending. It’s common to just swipe your card and not feel the cost of the purchase you just made if you are not paying in cash. This makes it very easy to avoid high credit card balances. No one ever want to open up a credit card bill and be surprised at the high credit balance, so find a way to keep track of your spending. You can jot down credit card purchases somewhere to keep up on your spending. You can also sign up for text or email alerts when you make purchases with your card, which can act as a friendly reminder of what you are spending. At the end of every week, check in how much you spent so you will know if you need to adjust your budget accordingly. Whatever method you choose, awareness is the key takeaway to be sure of.
2. Don’t go beyond 30% of your credit limit in a week
To pay attention to how much you are spending each week with your credit card, keep an eye on how much of your available credit you are using currently. As a way of good credit card Habits, you will have a good credit score if you use less than 30% of your available credit limit between all your revolving credit products. May be you have two different credit cards and each comes with a $5,000 credit limit. That means you have $10,000 of available credit and you will need to use less than $3,000 (30%) to keep your credit score healthy. In simplest term, you don’t have to spend up to your weekly or monthly credit limit, stay below the credit limit.
Keep an eye on how much money(credit) you are using each week when you review your credit card spending. If you are spending closer to 30% and it’s only the first week of the month, you will need to pay your credit card bill now so you have more room to spend throughout the month without passing that 30% credit card rate of usage.
3. Pay Monthly balances in full and on time
This is one of the good credit card Habits to pay off your credit card bill in full once a month in the normal circumstance. If you can’t pay off your balance in full, it’s still important to pay your minimum balance on time each month. When you miss a bill or make a late payment, you risk running into late fees, interest payments, and a poor credit score. You can avoid hurting your credit score by making a minimum payment. The healthier your credit score is, the better interest rates you will qualify for in the future when you need to borrow money. To make sure you never miss your monthly payment now can save you a lot of money on interest payments in the future.
You can sign up for automatic payments to ensure you never miss a payment in case you will forget. Just make sure you have enough money in your bank account to pay the bill, this is why weekly credit checking is important.
4. Monitor your accounts monthly
Maintaining a good credit card habits, one really important credit card habit is to make a part of your monthly financial routine, to closely review your credit card statements. Mistakes and fraud happen and you will need to be check if there is a billing error or fraudulent charge on your credit card statement. Also, spending notifications can really come in handy, but at least, you still need to confirm your monthly statement it is accurate every month. The earlier you catch a mistake, the easier it will be to resolve it.
5. Correct your mistakes daily
For a good credit card habits, this is something you need to work on every single day. We are all bound to make mistakes but how you learn and grow from those mistakes is what really matters. If you have credit card debt to pay off, missed a payment or made a purchase you regret, it’s normal to feel bad about it. With that being said, you can’t let those mistakes weigh you down either. It’s a much better use of energy to focus on how you can bounce back from them instead of wallowing in feelings of regret. There’s the need to sit down and make a plan to get a remedy to your mistakes. Looking to steps you can take to pay off your credit card debt completely, the system you need in place to make sure you don’t miss another monthly payment, checking emotional triggers that makes you to overspend and finally how to avoid them. Just because you made a credit mistake doesn’t mean you can’t recover from it and move on to become a responsible credit card user. Make an effort and you will overcome!
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