4 Ways to Use your Credit Card Wisely

Credit cards are great tools that can help you save money and work within a budget, here are 4 ways your use a credit card wisely

1) Only use your credit card when you need to, don’t buy things you don’t need or don’t really want. The best way to save money is by not spending it. Make a weekly or monthly budget and stuck to it. Only spend outside of your budget in an emergency.

2) ¬†Always pay your credit card on time. Missing a payment can result in missed payment fees, which add to your balance and lead to more interest on your debt. Always try to pay off your credit card at the end of the month, if you can’t at least make sure you pay the minimum by the due date.

3) Watch your balance, if you reach 30% of your limit you need to start curbing your spending. Things can get hectic and you may forget to watch what you spend, but you can always go online and check your current balance, do this at least once a week so you can get a sense of how much you are spending.

4) Always try to get the best deal on your purchases, even when applying for a credit card. Your credit card may have great rewards, but if you end up carrying a balance fees and high interest rates will become a problem. Avoid the thrills if you think you are going to miss a payment.

If you use your credit card wisely with these methods you will likely avoid economic heartache, so always watch your spending and pay on time.