Finance

Sure-Fire Ways to Manage Your Credit Card

 

Nowadays, the number of people gaining enough financial knowledge is growing. This is definitely good news. However, some are still unaware of the basic information they need to attain financial freedom.

For example, individuals are still unsure of how to properly handle their credit cards. Some go all out when it comes to using them while others tend to never use them, which sadly means they aren’t using it to help their cause. After all, credit cards have promos and discounts that could allow them to save some cash.

If you believe you fall into either group, then it’s your lucky day because we’re going to discuss some sure-fire ways to manage your credit cards.

Secure Your PIN

Not all cards require a PIN. However, if yours do, it would be best to always change it every now and then. Also, never trust anyone with your PIN because they might take advantage of this knowledge and purchase some items with your card—and this will then be charged to you.

Check Your Bill and Keep Your Receipts

It’s good practice to always check your bill a week or two before your due date. During this time, you can review all the items you have bought with your credit cards. If there is something amiss, you can immediately contact your bank and inform them about it.

It would also be nice for you to store all the receipts for the items you’ve bought so you can easily double check if there is an error in your bill.

Clear Your Balance Monthly

Before your due date even comes, make it a point to pay your entire balance. By doing so, you are ensuring you won’t get any extra charges for not paying your bill entirely. Keep in mind that you could also incur interest if you don’t pay on or prior to your due date.

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Pay Your Bill on Time

This goes hand-in-hand with the previous point.

As mentioned, you might incur interest when you allow your monthly dues to roll over. But apart from that, banks could increase them if you are a repeat offender—meaning you always end up paying your bill after your due date.

Beware of Your Credit Limit

Another extra fee you might get is when you go beyond your credit limit.

Credit card companies usually set a limit on a certain card when they provide you with their approval. Be sure you are aware of how much you can spend on it on a monthly basis. As much as possible, spend way below the limit so you won’t be in danger of going over.

Be Careful of Having Recurring Payments

Recurring payments are usually the amount companies charge to your credit card on a monthly basis. These are the subscriptions you signed up for. Well-known examples of these are Spotify and Netflix.

If you have these and your paying for them through your credit card, be sure that you are very much aware that they are charging you every month. If you wish to cancel, you can contact your bank and tell them you are withdrawing your permission for these companies to keep charging you.

Key Takeaway

In the Philippines, major credit card companies provide you with a great way to go cashless when the need arises. However, you should totally be aware of how you are using your cards so you won’t incur any debt that could pile up over time.

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