Do You Use Your Credit Card In The Right Way?

Do You Use Your Credit Card In The Right Way?

Maintaining your credit score is crucial as it would impact your loan amount or borrowings in the future. More the efficient usage of credit card more will be your credit score. It is important that you use your credit card wisely to maintain a good credit history. Unfortunately, many misuse its purpose resulting in lower credit score and poor credit history. It is never too late to start any beginning as long as you realize and learn something from it.

1) Never spend the maximum amount. As you are aware, you would be given a maximum credit limit for your credit card. This limit will gradually be increased or decreased by your issuing bank based on your credit score. It is natural that we get excited and tend to spend more during when we receive a credit card for the first time. Try to control your expenditure and spend within the limit given to you. Never spend the entire allowable limit.

  1. Self-motivation: We tend to spend more the very next day of credit card bill payment. This is typically a human psychology as you have a large amount to hit the maximum credit limit. Try to keep your purchase as low as possible. If you are unable to control your purchasing power, get a credit card with the lower credit limit. Motivate yourself to buy less. This will make your life better.
  2. Self-Discipline: Cultivate the habit of telling “no” to yourself when you want to use your credit card. Every month, keep aside a fixed portion of your income for paying your credit card bill and ensure you spend that amount only for the specific purpose. Try to pay your bills on or before time. Begin with one credit card and never buy more credit cards to pay the bills of your previous credit card. Paying your credit bills on time and controlling your expenditure does bring discipline to your living.
  3. Forecast the future: Sometimes, you might incur unexpected expenditures in a month keeping you away from paying your bills. In such cases, avoid making any purchase through credit card. During the month of financial difficulty, try paying the minimum amount in case you are unable to pay full. However, if you are sure of your future expenditure, do save for the same and try to allocate your income for paying the credit card bill. If your income is not sufficient, then try working overtime or purchase trading bot like the Bitcoin Code software and earn a considerable return from trading. By doing so, you can manage your funds during financial distress and maintain your credit score.

Building a good credit score takes time and it is equally important to maintain a good credit score. Plan your expenditure wisely!


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