Credit Cards: Always make your payment on time!

Always make your payment on time!

You should always pay it off in FULL every month, as well. You always want to make your credit card payment on time, and within the payment amount, if not more. Credit cards will take your purchase amount and usually divide that by 12 ( months in a year) and then they will add the APR (Interest). You want to pay MORE than the recommended amount that they bill you for because this is the MINIMUM AMOUNT. If you continue to pay the minimum amount, most will end up going to your Interest, and not to your prime (actual Payment)

Use your Rewards!

Each credit card has different rewards ( some NOT all). Do your research. Some have rewards on everything from insurance to flight and hotels, and even gas and groceries. Whether you have Visa, Mastercard, Discover, or American Express. You want to make sure that you reap the benefits and use your credit card at these places. A good example is if you AMEX ( American Express) gives you discounts for fuel points, then its recommended you use that card for filling up your tank quite frequently. This will gain you rewards and perks. The same thing goes for FFM ( Frequent Flyer Miles). If you purchase many flights, and travel a lot on your Discover card, then eventually, you will have XXXX amount of miles to use towards your next trip! Essentially, a free flight!

Don’t Overspend!

Try and use the card for necessities only. A credit card needs to be used efficiently and carefully. Frivolous spending will lead to unfortunate debt. these golden tools should be used in emergency situations only, such as filling up your tank when your gas light comes on. Consider the card as a small little personal loan to yourself, and then try and pay the entire amount off as soon as you can to keep those APR fees at bay!

A few more tips:
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Keep your spending reasonable!

Try and remain under 30% of your total credit line that they’ve given you. This has proven well for many people/ Try and keep your utilization (spending) under that mark and your rates wont go up, and you wont incur late fees, and best of all you can take pride in knowing that you will be able to pay the bill when it comes. For example if you limit is 1,000, try and keep you spending at under 300 dollars. This will ensure you that you still have the funds left should you need them and your payment will remain relatively low and attainable. This in turn eventually, will grant you increases on limite.