Good credit is like a good reputation. You build it one decision at a time. And one of the most important factors that will affect your credit is how you use your credit card. If you don’t handle your credit card well from the beginning, your path to a good credit rating may be rocky. We’re going to share some credit card secrets newbies will love.
Track Your Balances
Credit cards are a blessing to consumers who want to keep track of their spending. When you pay in cash and lose your receipt, you have no record of where your hard-earned money went, but you always have an accurate record of your expenditures when you use a credit card. You only need to log into your account online and review your purchases.
Search for Revolving Reward Categories
A few credit cards offer cashback rates that change from quarter to quarter. If you apply for a card with bonus categories that match your spending habits and then take advantage of those categories while they’re in effect, you can benefit even more than if you were just using a traditional rewards card. For instance, imagine that your regular credit card gives you 1% cashback on all purchases, but it gives you 5% cashback at hardware stores in the first quarter. If you’re renovating and buying lots of supplies, you’ll earn extra money just by using the right rewards card.
Hike Your Credit Limit Once Your Income Increases
Having a higher credit limit will not only allow you to spend more money, but it can also help your credit score by keeping the amount of debt you owe on your credit report in check. Applying for a higher credit limit can help you keep your credit score in good standing. The percentage of the credit limit you utilize at any one time goes into the calculation of your credit score. So having a higher limit will give you more room to work with for keeping that percentage low.
Use the Rewards
Many credit cards come with a rewards program, which can include perks like travel discounts, cashback, and free merchandise. However, some reward programs offer perks that expire after a certain period of time. If you have rewards with an expiration date, mark them on your calendar so that you don’t miss out on any of the money-saving benefits you’ve earned.
