Credit Management

The invention of the credit card is quite a big thing for human. They can purchase whatever they want through the help of the credit card. It provides freedom to all the people around the world to purchase whatever they want without having sufficient bank balance in their accounts. Credit cards are used by almost every kind of people living in small cities or big towns. However, it is a fact that credit card can be a boon as well as a bane at the same time depending upon its use and purchases.
Many times, people are unaware of using their credit cards effectively. This is the main reason which badly affect the credit ratings of the borrower and they find it hard to gain financial assistance from the banks and the lenders. In order to make sure that you credit ratings are not affected in a bad manner, you need to take care of your payments as well as purchases through credit card. When you make your credit card payments on time, it increases your credit score ratings and make you eligible to apply for more loan. However, if you fail to make credit card payments on time then it will negatively affect your credit score and you will not be able to get further credit from the financial institutions.  There are few important tips that you need to keep in mind in order to manage effectively your credit card.
Planning your purchases:
Before buying any product or service, think calmly and intelligently whether you are in a need to buy that product or not. Avoid to buy it if it is not necessary. You must make a list of priorities and then stick to that so that you can arrange for the money needed to pay your credit card bills. It is important that you don’t buy anything so expensive that later on you cross your monthly budget or make a credit limit on your card. An effective way to managing your credit card is to make a shopping list. Highlight all the important stuff that falls in to the category of necessities and try to stick with that list. It is also appropriate if you can make a list of products which you aim to buy from your credit card.
Check your statements:
It is always advisable to check your statements at the month end. It tells you your buying behavior and help in adjusting your balance. Nowadays it is very easy to check you statements online or you can use your smartphone in order to track you purchase behavior and credit card history.
Keeping track of supplementary cards:
Sometimes you forget the fact that you have provided supplementary card to your family members that are linked to your credit card account. The way these cards are being used can have an impact on your credit score. It is strongly advisable to check and keep a track of your supplementary cards especially those who are linked with your credit card account.

Promotional Offers:
Why should we pay more if we get the same product in much lesser price? Be smart while using your credit card and keep abreast of the latest promotions and discounts given by the card issuers. These offers can provide you the access to discounts, deals and privileges across different segments like dining, shopping and travelling etc.
Beware of the Cash advances:
Most of the card issuers provide you with the facility of withdrawing cash from your credit card but it is better to avoid this feature as you will be charged a cash advance fee and will not get any interest free period to make the payment. Cash advances will increase your minimum payment due and your overall balance which will make it difficult to pay off the balance in full at the end.
These credit management tips can help you a lot in managing your balance and avoid overheads.


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