20 GOLDEN RULES OF CREDIT CARDS
1. PAY DOWN YOUR CREDIT CARD BILL EVERY MONTH

Pay down your credit card bill every month.  Paying the minimum only will be hard to manage.

2. AT LEAST PAY THE MONTHLY MINIMUM ON TIME

Pay the minimum due on time. If you don’t, you could be hit with increased interest rates, and a lower credit score.


3. PAY DOWN YOUR MOST EXPENSIVE BALANCE FIRST

Eliminate high interest debt as fast as you can. If you’re carrying multiple balances on different credit cards, and can’t consolidate your debt on one low interest credit card, pay down the most expensive debt first


4. DON’T GO OVER YOUR CREDIT LIMIT

Although banks provide credit limits, they often allow cardholders to go over their limits .The lender usually charges you an over limit fee, often $29 or more, plus they can raise your interest rates.


 5. GET A LOW INTEREST CREDIT CARD WITH NO ANNUAL FEE AS A BACK-UP CREDIT CARD.

6. IF YOU CARRY A BALANCE, ALWAYS LOOK FOR A BALANCE TRANSFER OFFER

Transferring balances to a lower interest rate can save you hundreds if not thousands per year.

7. DON’T USE THE SAME CREDIT CARD TO CHARGE AND CARRY BALANCES

Use your rewards credit cards to earn points or cash back on new purchases and low interest credit cards for carrying balances. Transfer your balances from your rewards card to a low interest card if you have to.


8. DON’T USE MORE THAN 30% OF YOUR CREDIT LINE

Carrying a credit card balance that exceeds 30% of your credit line and your credit score will likely take a hit.

9. DON’T USE THE CASH ADVANCE!

Accessing credit on your credit  as cash advance can be very expensive. First there is usually a minimum cash advance fee of $3.50 or more.

Second, there is no grace period, so the cash advance will be charged interest from the moment it’s withdrawn. Third, cash advances often have higher interest rates than purchases, many as high as 27.99%!


10. DON’T APPLY FOR A CREDIT CARD YOU WON’T BE APPROVED FOR

Do not bother applying for a premium credit card, chances are you’ll be declined. The problem is if you apply and get declined often enough, your credit score will get lowered.


11. CHECK FOR SIGN-UP BONUS OFFERS

For whatever reason, banks continue to reserve their best offers for new customers. If there’s a bank offering 25,000 points with a first year annual fee waiver, and all you have to do is make one purchase, why wouldn’t you take the offer?


12. USE A PERSONAL FINANCE APP TO MONITOR YOUR CREDIT USAGE

To help monitor and control your credit card usage, use a personal finance app on your cell phone which will track in real-time, your purchases.

13. REVIEW YOUR CREDIT REPORTS

Get free copies of all two credit reports, since the information can vary per report, and review them carefully. Make sure all the information in each of your credit reports is accurate. Report any inaccuracies and have them corrected as soon as possible

14. USE CREDIT CARDS TO BUILD & INCREASE YOUR CREDIT SCORE

An excellent thing about credit cards is that if you use them responsibly, it will help increase your credit score and open up better credit options.

Stay debt-free by paying off your balance each month. If you have bad credit or no credit, consider getting a secured credit card to build your credit without the risk of increasing your debt.

15. STOP USING CREDIT CARDS UNTIL THEY ARE PAID OFF

If you are new to credit, make sure you don’t add more to your credit cards than you can pay off that month. If you have already fallen into debt stop using your credit cards until they are paid off.

Once you have paid off your credit cards, use them to purchase things you would normally purchase with cash or a debit card.

16. REPORT A LOST OR MISSING CREDIT CARD IMMEDIATELY

If your chip credit card is missing, lost, or stolen, you should report it immediately, else you can be liable for charges . 

If you don’t report the card missing or stolen and it is used, you can be on the hook for the charge

17. USE IT FOR CONVENIENCE, NOT A LICENSE TO SPEND

The best way to use a credit card wisely is to use it for convenience, not as a license to spend. Live within your means to minimize financial stress.

18. KEEP YOUR CREDIT CARD ACCOUNT OPEN

Even if you decide to stop using your credit card, try to keep it open. Your long-standing account and available credit will both look great on your credit report. Closing the account will not help build your credit.

19. UNDERSTAND THE CARD’S TERMS & CONDITIONS BEFORE APPLYING

Before you choose any credit card, make sure that you understand the card issuer’s terms and conditions.

Read the fine print and ensure that the fees, interest rates, penalties, rewards, and protection against fraud are clear to you. If you don’t understand something, don’t hesitate to ask the issuer.

20. CREATE A BUDGET AND STICK TO IT

Creating a budget will prevent you from making impulsive purchases. You can start by outlining your regular monthly expenses.

BOTTOM LINE

It’s important to know how to use a credit card wisely to enjoy its many benefits. Credit cards  help build your credit, lets you enjoy perks and rewards, and offers convenience in paying for your bills and purchases.

Make sure to use the above credit card tips  to ensure you get the most out of your consumer credit cards.

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KNOW AND UNDERSTAND WHAT MAKES A GOOD CREDIT SCORE

GET A SECURED CREDIT CARD TO BUILD CREDIT

You have to have credit to build credit — which can be hard if your income is low or you're unemployed and lenders aren't willing to take a chance on you. If you're in this situation, you should get a secured card to build your credit.

Banks and credit unions offer secured credit cards, which act like traditional credit cards but require a deposit that acts as your line of credit

The best way to improve your credit score is to make payments to your debt.

If you have a limited income, then a secured card is a very good option.

If you can save for a deposit for a few months and then open the card, in as little as nine months, you can establish a credit score or add enough positive information to increase your score

STAY IN TOUCH WITH YOUR CREDITORS.

TIP OF THE DAY

 

Borrowing and repaying your credit card

 bill on time, in addition to not carrying a 

large balance is one of the most important

 things you can do to build up a great credit score.

However having at least one account with

 a high balance can hurt your score even 

if your overall utilization is low.

Make sure your score wont suffer by 

spreading out a low utilization across 

all your accounts.

We hope we answered your question onhow to improve your credit score with a limited income If you’re still looking for some help improving that credit score, be sure to contact us and our team will help you any way we can

There are ways to improve your credit score and get back on track, even if you only have pennies left at the end of the month.

1. KNOW AND UNDERSTAND WHAT MAKES A GOOD CREDIT SCORE

By gaining a better understanding of what makes a good credit score, you’ll be on your way to improving it.

Here’s what goes into a good credit score:

Payment history — 35% of your score is based on this one factor!

Amount of credit owing

Credit utilization-30%

Credit history

Types of credit you have

Recent  credit inquiries

2. FIND CREATIVE WAYS TO COME UP WITH CASH FOR DEBT PAYMENTS.

The best way to improve your credit score is to make payments to your debt.  Another easy way is to bring in some extra income using skills you already have, or by selling things you might not need in your home.

Here are a few creative ideas to come up with extra cash:

Get a one or two part-time jobs  if you can manage it.

Sell clothes, furniture and other items in your home you don’t need

Rent out part of your home or get a roommate

Take online surveys for cash or gift cards and more

3. STAY IN TOUCH WITH YOUR CREDITORS.

This could just save you and your credit. Take the fear out of calling lenders by being open and honest about your situation.

If you’ve fallen behind on your payments, reaching out to creditors will help you find out what options are available to you.

Be sure to let creditors know as soon as you have trouble making payments, that way, you’ll avoid your account going to collections.

4. AVOID DEBT REPAIR OPTIONS THAT PROMISE QUICK RESULTS

No matter how hopeless things may seem, don’t get duped into quick fixes or magical debt loans.

Your credit cannot be  repaired overnight, so run from anyone that promises anything close to that.

Payday loans are another quick fix to avoid. Not only are they a costly way to borrow money but using debt to pay for debt is never a good strategy.

If you cannot afford to pay the debt you already have, how can you pay another debt added to your list?

Debt settlement companies might offer to help you settle your debt for less than you owe.

However, these programs often ask you to stop making payments to creditors and deposit money into an escrow account each month until there's enough to pay the settlement amount.  This will more likely hurt than help your credit, because your bills aren't being paid and late fees are accruing.

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