No doubt that credit card is the most powerful tool out there in your wallet, which can do wonders for you. While this is the case, one need to also know that irresponsible use of credit cards may also lead a whole world of hurt. According to the latest statistics of US credit bureaus, an average American family holds about $7,200 in terms of credit pay debts. The alarming fact is that this figure tends to increase each year, so one needs to be cautious.
No, you don’t have to stay away from using credit cards in Florida. Use it confidently! The good news is that a lot of Americans are awesome at using credit cards well. As per the Federal Reserve stats, nearly about 53% of all purchases are now made with credit. You just adopt a few simple habits to enjoy the best benefits of credit cards. Let’s explore how.
Using Credit Cards to your Advantage
Just follow these rules to be a disciplined credit user and make a credit card your best mighty friend.
Tip #1 – Pay your Bills Monthly
If you don’t want to end up as an “average American” as discussed above, stay clear off debts. For this, charge yourself only with what you can afford to pay off in full monthly settlements. It may seem to be challenging for those who haven’t practiced it, but this is the No#1 rule to use credit cards well and not letting them use you.
Tip #2 – Never Delay Bill Payments
Along with paying in full, paying on time is also the key to success if you use credit cards in Florida. You can see that most providers charge worst fees on late payments, sometimes up to $50. Adding to it, you should know that 35% of your credit score comes purely based on your payment history, so missed payment can really take a toll on your score to leave you in a bad shape. On the other hand, paying bills on time will keep your interest rates low and enhance the health of your credit score.
Tip #3 – Keep a Track Online
One point providers always used to promote card usage is that it is easier to keep a track of your expenses than cash as it creates a paper trail for you. While you use credit cards for purchases, you don’t have to keep the receipts of all your grocery or gas. But, always log on to the your account and see where you tend to spend money, the balance, and you can have even get an instant snapshot of your budget burn there.
Tip #4 – Use Credit Card to Compliment to your Budget
The fair way to be disciplined in money matters – use credit card to compliment to your budget. Create a written budget first, and then start using credit card for your expenses until you reach to your predetermined expense tolerance. It can also help you to earn rewards for purchases and enjoy certain protections too credit cards offer. To do this effectively, log on to your online account frequently and make sure you are well on track.
Start with the above four on using credit cards in Florida, and over time, you can proudly identify yourself as one far above the average Americans as a wise and successful credit card user.