We have long been accustomed to using credit cards. They are easy to get, convenient to use. But it’s also easy to get into debt. That’s why it’s important to follow the rules of how to use credit cards properly. It is very difficult to resist the temptation, especially on New Year’s Eve. The necessary amount can be easily taken from the bank, but you will have to return the money with interest. The main thing is not to lose your head and to maintain a sensible balance between your debts and your income. However, if you want to know even more information about credit cards then you probably need one of the most useful sites on the Internet. Please, follow this site https://teuscherfifthavenue.com/, where you can find out all the necessary data about cards such as AmericanExpress, MyIndigo, Sun Trust and other credit cards. By means of this website you will be able to activate your credit card or even to accept credit one offer on your own without any problems. Moreover, you can do this at home with an Internet connection.
Rule Number One: Make Your Payments on Time
This is the most important credit rule. Don’t make late payments on your credit cards. Your credit history depends on it. A good credit history guarantees the approval of a large loan if the need arises. So, it is not worth neglecting this rule. And more so because delinquency is bad for your pocket. Banks will charge you a penalty for breaking a payment deadline.
As a rule, credit cards set a period during which you can return the money without paying interest – the so-called “grace period”. If you manage to repay all of your debt during the “grace period,” the bank will not charge any interest. If, however, you can’t pay all of your debt, make at least a required payment before the “grace period” expires. If you constantly have problems with repayment on time, it is better to give up credit cards.
Keep in mind that your card activation is a very important process too. All the necessary data about credit card activation you can find on the website that I mentioned earlier. But nevertheless, to activate your credit card, you can do so online, through the app and provide your full card number and verify your identity.
Rule Number Two: Never Use More Than 30% Of Your Credit
The lower the ratio of used money to available limit, the better your credit history will be. Banks don’t like customers who spend almost all of their credit line. Even if you’re slightly over the 30% credit limit threshold, you run the risk of being put on a “bad credit” list. Then you may be denied a new credit card, and not only at this bank.
But more importantly, you run the risk of ending up in a situation where you have to pay interest for months. If the amount is too high to repay in full during the “grace period,” you will have to pay accrued interest. If you can’t pay it off in the next month, the interest will increase. Your credit will snowball. Getting into debt is much easier than paying off your creditors.
Rule Number Three: Read the Terms and Conditions of The Loan Agreement
Before you sign a contract for banking services, it should be carefully studied. Each bank has its own loan terms – and they can have their own pitfalls.
I recommend reading carefully what interest rates are offered by the bank, and in what time frame the interest will be charged. It is important to read every page of the contract, including the fine print. Often, it’s those lines that contain information, ignorance of which can play a cruel trick on you. And be sure to keep the printed agreement with the bank, otherwise, you won’t be able to quickly solve any problems.
Rule Number Four: Check Your Credit Card Statement
First of all, you may find that there are inaccuracies, and banks are not immune to mistakes. And secondly, checking your credit report will make you more disciplined about your future spending. It’s easy to see where you might have saved money, and what you didn’t need to spend. Verify Card Information and Review is just another way to improve your credit score. Banks are always giving bonuses to the most disciplined borrowers.
Rule Number Five: Spend with a Budget
The point of a credit card is not for everyday use, but only in situations where you really need it. Many people do not follow this credit rule because they think of a credit card as a “financial lifeline.” Meanwhile, you should only use credit cards for purchases that cannot be paid for yourself, without credit. Don’t get yourself into a “debt hole” – plan your budget. Uncontrolled spending leads to higher interest payments.
Rule Number Six: Plan for Future Expenditures
Treat the money on your credit card as if it were your own money, not debt. If you’re going to borrow money for a big purchase or vacation, it means you need to save for something else. Then it will be easier for you to meet your “grace period” and not have to pay interest.
Rule Number Seven: Balance Your Spending and Your Income
Credit cards are not income, not personal money. People often forget this and get used to paying daily for small everyday purchases with a credit card. This is fraught with the risk of exceeding the 30% credit limit threshold. Often banks offer to increase the credit limit, but this is not a solution to the problem. A higher limit will encourage you to spend even more of the money you have available. So, weigh the pros and cons, and make sure you’ll be able to repay the debt during the “grace period” if you increase your line of credit.
Rule Number Eight: You Can’t Have Too Many Cards and Not Too Few
One card is good for your credit history. But if you use it regularly, having several cards will make it much easier to manage your finances. Especially if you have credit cards with “grace periods” of varying lengths. But keep in mind that some banks have a negative attitude toward customers who use more than one card at a time.
Thus, observing these eight rules helps you avoid unnecessary interest spending and use your credit card money with maximum efficiency and pleasure. Also, keep in mind that the most essential information about credit card activation and offers you can find on the website.
