When it comes to credit card, basics are quite simple. You use it to pay for something, get some rewards based on what you buy and pay your bill later on – ideally, you should pay everything in one go, to avoid paying interest too. Obviously, there is a bit of customization when it comes to credit cards and a few small settings can ensure you get as much as possible from your credit card experience. Here is everything you need to know.
Turn balance alerts on
Cash is easy to monitor – you see those notes leaving your wallet. When it comes to credit cards, you do not always log on to the app to see the balance. This is why you need to turn balance alerts on and keep an eye on your expenses.
Such notifications could come by text, email or simply the app. You can set them for a certain value or perhaps a percentage of your credit limit. Exceeding this limit may affect your credit score. Getting a notification can help you stay on track.
Use a spending tool
Many credit card companies provide access to spending tools. These tools provide statistics and analyses of your spending habits. You can usually choose a date range – it could be a month or a whole year. You will see where your money went in a few categories – from supermarkets and restaurants to holidays and gas stations.
Not all issuers provide this tool, but most of them do. Login and look for it in the menu. It will give you some insights on your habits. If you struggle with your spending issues, you might get some clues about where to cut back.
Boost your score out of nowhere
This is not a general rule, but it could work. Your card issuer provides info about your credit limit and debt every month. The three major credit offices will know about it and update your score accordingly. Credit utilization is often reported and can be easily calculated. If your limit is £1,000 and your balance is £250, your utilization is 25%.
This rating is extremely important for your credit score because it shows that you owe money. Ideally, you should keep it under 25%. The issuer will not report this rate whenever you make a payment, but at the end of the cycle – making a midway payment could boost your credit score overnight. Plus, you will also save on the interest rates later on.
Move your due date
Missing a payment could be a big issue – low credit score and extra fees. If the due date is inconvenient – such as a few days before your wages come in, you can always change it. Get in touch with the issuer and change it to a day after you get paid. Many times, the process is doable over the Internet – fully automatic and just a matter of minutes only.
Hunt the rewards
If you like spending – especially online, make sure you take advantage of all the rewards associated with your card. The issuer’s bonus mall could have exquisite offer. Instead of getting back 1% or 2%, you could end up with up to 10%. You might have instant cash back offers as well – sometimes, even more than £10 for one transaction. Hang around the issuer’s app offers to see what goes on.
In the end, it makes no difference if you struggle to keep things under control or you are really good with budgeting. These tips will most likely make your life easier and can help you manage your credit card in a more efficient manner.