Ways to Make Your Credit Card Work for You, Not Against You


People tend to spend more when they use credit cards in place of physical cash. While credit cards can be used to rack up airline miles and points that can be used in place of cash over the long term, spending money is simply easier with credit cards. 

Many people end up spending up to 100% more because using a credit card takes away the immediacy of the payment.


There are many ways to ensure that you don’t let impulse buying get the best of you, and instead use credit cards responsibly without taking on too much debt.

Pay off as much as you can

Your credit card debt should not exceed 10% of your monthly income. Don’t just pay off the minimum amount every month. That will accumulate your debt uncontrollably. 

The only way to avoid getting into a debt crisis and avoid paying interests on your purchases is to pay off the entire amount whenever you can. This could mean paying it off in full each month, or a few times a month, if you feel that would help you stay on top of your expenses.

Pay your bills on time

Most credit card issuers charge late fees. A missed payment is also very damaging to your credit score. If you pay your bills on time, you avoid high interest. 

To keep track of when to pay your bills, mark a calendar or add a reminder on your phone.

Keep check of your purchases

If you’re worried about overspending, you can ask your credit card company to pull back your limit until it’s an amount you can manage to pay off in full each month. Most issuers can change your credit card limit immediately.

You can also use your credit card issuer’s website or app to keep track of how much you’ve spent. If you check once every week, it’ll help you manage your finances better and not push the limits of your credit card. 

It’ll also make you see if you’re spending more than you realized on certain habits, such as coffee, eating out, Uber rides or smoking.


Take your rewards

Credit card companies offer certain rewards on credit card usage. These include hotel loyalty points, frequent flyer miles, and loyalty points that can be used in place of cash even for regular expenses.
Some credit cards have better perks than others. Do your research. 

Choose a credit card that aligns with the perks you’d like to enjoy, such as free travel insurance or warranties on gadgets.

Tyndall Federal Credit Union is a banking organization that offers financial services such as mortgage lending and credit card handling in Panama, FL.
 
If you need help with a car or home loan, or would like to avail Tyndall’s banking services in Panama City, contact them today.
 


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