Five Tips When Using a Credit CardWritten by Carly Simon-Gersuk
A credit card is a valuable tool when used responsibly. It is often safer and more convenient than using cash or debit. Plus, it can be highly rewarding as it can boost your credit score.
While it is easy to get into the habit of using a credit card for most, if not all your purchases, it is important to make sure your habits are not damaging your credit score. Here are 5 tips you should use to responsibly use your credit card.
1.Know your terms and conditions
When you sign up for your credit card, the financial institution will provide you with an agreement and account opening disclosures. Make sure you read through this information and understand the terms. This information will include due dates, fees, interest rates, and other valuable information.
2.Make payments on time
Paying your bill on time will result in boosting your credit score and eliminating your risk of paying late fees or interest rate increases. The option for paying back your credit monthly is by paying a minimum amount or the full amount. With the flexibility to pay things overtime, paying the full amount is the best option to avoid interest on carrying a balance.
3.Check your monthly statements carefully
Check your credit card statements regularly. Check you are staying within your spending limits and for transactions you do not recognize. If you see any unauthorized charges, report them to your card issuer immediately. The quicker you report any fraud, the quicker you stop unauthorized spending and save your credit score.
4.Report a lost or stolen card immediately
If you are missing or suspect someone stole your card, report it to your card issuer immediately to have your card deactivated. Also, check your recent purchases to make sure there are no purchases you did not authorize. Many credit card issuers have a $0 fraud liability, which means you would not have to pay for any unauthorized charges on that card.
5.Monitor your credit
Monitoring your credit score is always a good idea to help you keep track of where you are. Constant monitoring will also help you identify errors sooner and prevent wrong information that can lower your score and be costing you money.
Written by Carly Simon-Gersuk