How to use a credit card?

Keep control of your cards instead of letting them control you. Cleaning up your credit card debt takes time and self-control, but the steps outlined here aren’t difficult. There’s no reason that credit cards can’t be a helpful, convenient tool – assuming you can learn to use them sensibly and responsibly. Use these simple tips to stop adding to your existing credit card debt and start regaining control of your finances.

To start with credit

While getting started with your credit card, don’t make maximum use of credit card immediately.  Instead, make small charges on your credit card and pay the balance in full each month. The motto of a credit card isn’t to buy things you don’t have the cash for, but to begin building a good credit history and instill good spending habits.

Plan your payments

Manage to pay more than the minimum balance every time. It’s tempting to send in the minimum monthly payment when you’re under financial duress, but don’t do it. Not only will you never pay off your bill, but the interest rates that credit card companies charge will actually keep your bill growing every month. Instead, send as large of a payment as you can afford to. Where possible, reduce your spending in other areas to focus on paying off your credit card debt. Building a good credit score takes time so, doesn’t try to rush it. Use credit responsibly and a great credit score will follow.

Review your activity

Monitor your credit card statement thoroughly every month. Don’t take for granted that everything on your credit card statement is accurate. Go through each transaction on your card to be sure that: your last payment was applied correctly, you were charged the right amount for all your purchases, and there are no unauthorized transactions on your credit card.

Self- control

You’ll have to maintain self-discipline and stop yourself from using credit card to make a purchase, but can’t pay your bill in full at the end of the month. Make sure that you put money aside to pay your credit card bill on time and don’t spend it on something else. Initially, manage to use just one credit card, so you can keep a track of your payments easily. Several balances and due dates can cause confusing and lead you to debt and a damaged credit score.

Wise decision-making

Are you ready for bigger purchases? Make wise decisions about purchasing items you need versus those you simply want. Using your credit card responsibly means recognizing which things you need and which you just want. Once you’ve created a habit of paying your complete bill, you are better prepared to use your credit card for slightly larger purchases.

Source- Secondary