Handling an unsecured credit card can be effortless as long as you are familiar with how such program works. However, if this is your first-time to use one and you think you need assistance to effectively manage your line of credit then, we encourage you to carefully observe the following pointers:
Settle your credit card bills in full. It is never wise to submit just the minimum amount required by your card issuer and to carry balance from one month to the next. This is because such decision can cost you a great deal of cash, usually in the form of huge interest charges. At the same time, such habit can pull your credit score down and thus compromise your chances of qualifying for affordable credit deals, later on.
Hence, to avoid incurring penalties as well as encountering the problems mentioned above, we encourage consumers, like you, to always pay their dues in full.
Say NO to payment delinquency. Always remember that payment delinquency – that is, deliberately skipping or missing out on your credit card bills – can be disastrous to both your credit history and personal finances. After all, failure to keep up with your payments will surely get you penalized with late payment fees and surcharges. Moreover, it can inflict damage to your credit history, which will surely make it more difficult for you to negotiate with your card issuer for more flexible payment terms and for lower rates of interest.
This is why we encourage you to pay your bills, not just completely, but also prudently. To succeed in this matter, you can employ simple tools and techniques that will help you remember when your bills are due. For instance, you can set up personal alerts or reminders in your mobile phone. You may also mark your calendars with your payment schedule or use sticky notes on your personal computer. That way, you can easily remember when a bill is due. At the same time, you can have enough time to prepare the funds you need to submit complete and on-time payments to your unsecured credit card issuer.
Resist the urge to get more unsecured credit cards, most especially if your existing line of credit carries a high interest rate. Always remember that managing and using several credit cards increases your risk of incurring a huge debt which you might soon find very hard to pay back.
So, to avoid falling into debt traps, it would be best to be contented with your current card account. And we encourage you to heed the advice of experts to apply or sign up for additional credit cards only if there is an extreme need for you to do so.
Use just a reasonable percentage, about 30 to 40 percent, of your credit limit. There are plenty of benefits associated with this tip. First of all, it can help you avoid incurring huge overdraft charges and declined transaction fees that are usually charged to cardholders who maxed out their lines of credit. Second, it can help you maintain a low debt to limit ratio, which is an important factor that affects the computation of your credit score. But how can you do this?
Well, you should make it a habit to check the available balance on your credit card before using it to cover your bills and purchases. This way, you can easily determine whether or not it would still be safe for you to charge your expenses on your unsecured credit card account.
Sean Travis is a credit card specialist and a freelance writer. He has written and contributed several articles on different finance-related topics, most especially on secured and unsecured credit cards. To read more of his works, please visit http://securedcreditcardsonline.com – a site dedicated to answering questions on personal finance, most especially on credit card management.