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How to Use Credit Card Wisely and Intelligently? Credit Limit

 

 

Knowing how to use a credit card wisely is priceless. When you earn the right to use a credit card because your request has been approved by the card administrator, this is because based on your credit history, bank credit score has helped you get the credit.

How to Use Credit Card Wisely

However, many people find that when they get a credit card, they use it, spend it on purchases and travel, and that’s fine, on the contrary, when they get permission to use a card, in addition to the monthly reimbursements with invoices, there are still credit obligations included in the invoice. Let us understand how you can use your credit card wisely and intelligently.

Card credit limit

Card credit limit

Keep your credit card without spending at a minimum, meaning the ideal according to the best financial advisors is whether it tastes only up to 40% of the total limit released by the lender. Do not try to apply for a second credit card if you are having difficulty paying the bills on the first card. This will lead to a risk of having the application disapproved.

Credit Card Expenses

Credit Card Expenses

 

When you receive your new credit card from a bank or card issuer, it already comes with a certain pre-approved credit limit for immediate use based on your repayment capability. In the course of use, the lender reviews your discipline on the invoice payments, and due to an increase in your income or out-of-pocket expenses, banks can tempt you by increasing your credit limit – stay tuned! Read the article: Everything you need to know about credit card and understand how the various types of fees, charges and costs are applied to the credit card.

A higher credit limit will allow you to spend more but it is important to remain disciplined and also avoid incurring further debt. You’d better not increase your credit limit for at least the first year of using the credit card, so that you get used to the payment schedule. Increase your credit limit only when your income increases.

 

Monthly invoice payments

 

Monthly invoice payments

Your credit card bill will mention the amount you need to pay for all transactions made during the billing cycle, the due date for payment, and the total and minimum amount to be paid, and the possibility of debiting the debits.

It is worth mentioning that credit card holders who make payments of the outstanding balance in its entirety, in general, create a higher score and confidence with the company that manages the card.

The ideal is also to maximize your grace period without interest. The concept of minimum balance allows you to pay part of the total amount and continue with the use of the credit card, but this means the charging of additional interest rate on the balance due. So be sure to pay the full amount of your invoice to avoid having to pay interest, charges and IOF more.

 

Expenses with your credit card

 

Expenses with your credit card

Now that you have a new credit card, you may be tempted to do a lot of compulsive shopping. Remember that reckless expenses can lead to serious problems with delinquency and financial planning if you have one, and still take the name to the SPC and Serasa Query services and consequently get negatived.

In general credit card holders always end up spending more than they can actually afford causing an impact on the bank balance and insufficient monthly income. Ideally, you should use an online planner, spreadsheet, or platform to manage your expenses, so you can say that you know how to use a credit card wisely and intelligently.

Also keep track of your card expenses. This will help you detect any discrepancies in the invoice, or even undue charges.

 

Keep your credit card safe

 

Keep your credit card safe

Never disclose your credit card PIN and the CVV (card verification value) number to anyone. This is a safe way to avoid misuse and keep your card away from scams and online or home scams. Also, make sure that whenever you shop online, do so on a secured site and when you do not personally let your card out of your sight.

 

Reward Point Programs

 

Reward Point Programs

Do not neglect the incentives you have right and access when using your credit card . The miles to fly and travel free of cost, shopping points are great, bonuses and prizes are not even talked about. Take advantage of every incentive your card takes to save money or to earn it.

Let us know in the comments below about your experiences of how to use credit card and profit from it. Thank you!

 

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