It’s easy to go overboard when using a credit card to pay for bills, products and services. However, at the end of the day you should still pay for them, or else you’ll quickly find yourself in debt.
Here are 5 tips to be a smart credit card user.
Don’t Spend More Than What You Can Afford
The golden rule of finance and budgeting applies regardless of whether you’re paying cash or credit. To be financially stable, you should live within your means, or stay on budget.
Spend wisely, and don’t bite off more than you can chew when buying non-essential goods and bright items. Bright is an easy app that helps you get debt-free quickly. Bright’s MoneyScience™ AI studies your finances and analyzes your debt, looking at your balances and interest charges. Bright makes smart credit card payments for you, always on time and optimized to pay off your cards faster. Bright also adjusts as your finances shift.
Pay More Than the Minimum
When it comes to settling the card amount due it’s best to pay more than the minimum. In fact, if you can pay the amount in full, the better.
Interest rates can quickly pile up and add to your credit card balance, which in turn makes it harder to pay off what you owe. It’s similar to the first tip where you should only spend what you can afford- if you follow that then you shouldn’t have any problem paying more than the minimum.
Pay on Time to Avoid Fees
Smart card usage also means you have to be responsible for paying the amount due on time. In the same vein as the interest rate, your card balance can accrue late fees, which will ultimately be an inconvenience in the long run. The bottom line is that you’ll want to avoid getting penalized as much as you can so you won’t fall into debt.
You’ll want to take note of each credit card’s due date and minimum amount to manage credit cards well. Keep in mind that not paying the minimum amount on time will lead to greater finance charges.
Use an App
Technology has made things, including managing finances, budget and credit card debt, easier. Today, you can use an app such as Bright on your smartphone to become a smart credit card user.
Check for Deals and Rewards
Credit cards offer several benefits compared to paper money. You wouldn’t need to carry large volumes of cash and you can earn perks such as cashback points and rewards.
Smart saving and getting maximum perks is part of being a savvy shopper. Most credit card merchants will have several promotions and events happening at any given time, and others will partner up with groceries, food delivery apps and brands to offer significant savings and deals.
It only takes a few minutes to check card deals online and on social media. Make it a habit to see what discounts you can get by using your card before completing a purchase.