Owning a credit card can be a big responsibility, and it can be either your friend or your foe, depending on how you use it. The following are ways to smartly use credit cards and enjoy its long list of advantages.
- Define specific goals of owning a credit card.
If you’re a first time credit card owner, you have the chance to start it right by building a good credit history. How do you do it? Start by setting your goals. First, try to stay below your credit limit and never max out your credit card.
Remember, your credit card should not be treated as your direct cash source, but an alternative to support small monthly charges. Getting used to spending below your credit limit early on is a sure way to become a responsible credit card owner.
- Keep track of your daily credit card use.
Thanks to today’s technology, you can now easily monitor your credit card use online – and this is very important especially if you’re a new credit card holder.
Paperless billing documents are also available to help you get in touch with your monthly credit card statement wherever you are in the world, instead of having the bank send you a letter to your address. This way, you can easily see your daily and monthly spending pattern, and make adjustments if necessary.
- Make use of your credit card’s rewards program.
Once you have developed the self-discipline to use your credit card responsibly, it’s time to avail of the perks of owning a card. Rewards, for example, are available for cardholders. When spending using your card, you can earn points, discounts, cash-backs, or even mileage points and use them in your future purchases or bookings.