People seem to think that credit cards are bad but we’re here to tell you that they aren’t. Perhaps the only thing that’s bad about it is if you don’t know how to use it. There are thousands of credit card owners who don’t know how to wisely manage their finances and so they end up in debt. Don’t let this happen to you. Learn how to use your credit card so you can increase your credit card cash advance limit. The following tips will help you take advantage of your credit card and the numerous benefits it has to offer.
Choose Your Credit Card Wisely
Before you apply for a credit card make sure that you know the features it offers and check to see if it fits your lifestyle. Choose a credit card that offers the most benefits and rewards. For example, a credit card that will give you enormous discounts on fuel will not benefit you if you don’t have a car. So, it’s actually useless. If you love to shop, find a credit card that offers shopping rewards or if you love to travel, find a credit card that are tied-up to airline companies like lounge access or miles points. If you fancy eating at restaurants find credit cards that offer dining discounts. You should also check the fine print and read their benefits such as extended warranties, trip cancellation insurance, lost card liability etc.
Earn Money While You’re Spending Money
Do you know that there are credit card companies that offer cash back and reward points? They usually offer these benefits if you use your card to swipe restaurant or utility bills. Every time you swipe you earn points. You can use redeem these points and earn gifts or you can convert it to a gift voucher.
Always Pay Your Bill in Full
If you have the capacity to pay, pay it in full. Don’t just pay for the minimum amount and roll over your balance because the interest is going to be hurt your finances at around 24% to 40%. A wise credit card user will always choose to pay off everything at the end of the billing cycle. If the full amount is too heavy for you, pay your bill by spreading it out all throughout the month until you complete it before the due date. There’s nothing more fulfilling that knowing you are debt free.
Always Pay on Time
Do you know that if you fail to pay your credit card on time the fees are enormous? It is important that you strive to pay on time to keep your credit score high. Your credit score is closely linked to your repayment history. So, if you don’t pay your bills on time it will negatively affect your score. We don’t recommend you use several credit cards especially if you have a history of not paying on time, as this will reduce your creditworthiness. If your creditworthiness is affected, you’ll have trouble getting loans in the future.
Never Forget to Claim Benefits
Credit card companies offer benefits whether these are bonus points for registering or cash backs. Don’t miss out on these offers and when you qualify, claim them to maximize the use of your credit card.
So, you see, credit cards are not as bad as you think. In fact, there are actually a lot of benefits that come with it. Don’t listen to people when they discourage you from getting credit cards because if you just know how to use it, when to use it and what to do with it you’ll enjoy it and the benefits it has to offer.