Using your credit card to deal with your daily purchases sounds simple enough, right? Well, what if we tell you can get a lot more than what you are already spending? Yes, credit card offers more value for your money than cash. If you are interested, read on the following pointers.
Balance Alerts Helps to Save Money
Keeping your spending habits in check can be a real challenge. But, there are a few precautionary steps every issuer takes to keep your urges in check. They set balance alerts which texts you when you have reached a spending limit.
Signing up for these services helps you keep track of your spending, and puts a stop to the craziness when you reach 10% to 40% of your set limit. This way you will stop overspending before jeopardizing your finances.
Analysis Tool for Budgets
Online banking over many benefits, one of them is a spending analysis tool for your credit card. This lets you overview how much you spend in different sections (for example, travel, bills, outings, shopping). You can view these every month, and learn about your spending patterns.
Therefore, when you sign up for an online banking platform, make sure you check for these. These tools can offer some real insights whether you are doing justice to your finances or not.
Improving Your Finances
Every month, you get a financial report, and transactions. Don’t worry; you are not the only one getting a review of your financial activity. Yes, some similar reports are being forwarded to three credit bureaus that improve or deteriorate your credit score based on these findings.
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This is better known as calculating the credit utilization ratio. This info isn’t handed over right after you made your payment. It can be forwarded at any time. If you charge your card highly, this habit will lead to low credit utilization ratio, and a big chunk of your credit score will be evaluated by the amount you owe.
Shop with Rewards
Everyone loves to use their shopping rewards. Well, here is another treat, shopping will reward leads to more rewards. If you shop online, you can use reward malls with every order. This helps you get more value for your money. Don’t assume your lender is in the loss for this. Instead, they stand to profit.
This is not well advertised, but you need to visit the offers.creditcard site, and learn about their rewards.
Moving the Due Date
You don’t want to miss a payment as it can really make you look bad. Remember, 35% of your credit history is evaluated by the fact that you pay bills on time or not. If your billing shows a late payment, it’s bad. But if it shows you miss a payment, this is the worst-case scenario.
So what should you do if you are short on payment? Paying late is better than missing a payment, so you should move the due date, and hope for the best.
