Tips to Get the Most Out of Your Kredittkort, or Credit Card
Credit Cards
It is in your best interest to have a credit card these days because they are used for almost everything. They also come in handy when you want to make any kind of reservations because many businesses in the service industry still only take credit cards for that. To get a good credit card with a higher limit, you must take steps to keep your cards in good standing.
Everyone wants a credit card, but no one wants to pay high costs of having one. We all want the cheapest, or billigst, cards but want the most benefits from the card. This is possible only if you take care of your credit. You can do this in many ways and be a happier consumer.
This article will share how to get the most from your credit card while still keeping your card within your budget. It can be done if you are careful about your spending with the card. It takes a little practice, but you can do it if you try hard enough.
Tips
- Select Wisely
Before you get your first credit card, you need to decide what benefits you want from your card. There are cards that are just basic credit cards with absolutely no benefits except to extend you credit. Then there are cards that can do just about everything including paying you back money that you spend at the end of each month.
You also need to check into all the fees that are associated with the card because these costs can make the card unworthy of use. There are many fees to watch out for including late payment fees, credit shield, insurance, and lost card liability. See if you can find a card that has limited fees for you to use.
- Earn While You Spend
There are many credit cards that allow you to earn points or rewards while you spend with it. These points can be traded for a variety of things from gift cards to brand new cars and everything in between. Choose a card that has the rewards that you can use – if you are not a traveler, frequent flyer miles will not do you much good. You can look at this site featuring the best rewards and points to help you to choose the right card for you. Be careful to choose just the right card with the right rewards for you.
- Use Float Wisely
There are ways to avoid paying any interest on your card by floating your payments. If you buy things at the beginning of your billing cycle, you can float your payments until the end of your billing cycle. If you pay before the bill is due, you can avoid interest fees and save yourself some money. You could get up to fifty-five days in between payments if you are careful.
- Pay in Full
If you want to use the float option and save on interest fees you must pay your bill in full each billing cycle. If you fail to do this, you will be charged a hefty interest fee that can be as much as forty percent. If you cannot pay it all in full each month, see if you can break it into smaller payments spread out through the month. That way, you will have it all paid by the end of the billing cycle.
- Pay on Time
It is also very important to pay your credit card bill on time to avoid the extremely high late fees that are associated with the card. If you are late, you will also not be able to avoid the hefty interest fees each month. Be wise and budget for your credit cards each month to get the most out of them.
- Watch Your Credit Score and Credit Utilization Ratio
Your credit score is what is utilized in helping you to obtain credit of any nature, including credit for buying homes and cars. You want to make sure that you are making your payments on time to make sure that your credit score stays higher. You want a credit score of 750 or higher to be considered having good credit.
You also want to watch your credit utilization score because it can also affect your credit score. Your credit utilization ratio is your total credit balance divided by your overall credit limit. The higher credit utilization ratio that you have, the riskier borrower you become. To learn more about credit utilization ratios, look here: https://www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/. This site can help you to understand the concept better.
- Get Chip Cards
You want to make sure that you get a credit card with a microchip in it to help decrease fraudulent use of your card. You also want to make sure that you have a good PIN number to go along with it to help prevent your card being used by another person. These are very common cards today, but if the credit card company does not send you one, request to have one in writing.
- Claim Your Benefits
If you have a card that has benefits such as rewards or points for traveling, take advantage of those benefits. If you get bonus points for signing up or cash back for spending on certain items, use those benefits. To get these benefits, call your credit card company who will gladly help you.
- Get Complimentary Card Benefits with Your Family Members
Check the cards used by your family members to see what benefits they have. You can make sure that your family members have different cards with different benefits so that you can maximize those benefits. This will allow your family to have the best benefits from all the different cards that you are using.
- Restrict the Number of Cards That You Own
You do not want to have many different credit cards on your own because that makes it difficult to keep them all paid up and used wisely. It is best if you only have two credit cards – one that is used for regular spending and one that is used strictly for emergencies. Having fewer credit cards also cuts the risk of losing them or having them stolen.
