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Credit cards play an important role in your financial life. When used the proper way, they can help you build your credit health. Unfortunately, way too many people learn how to use their credit cards the hard way. With that in mind, we’ve listed out 6 tips to help you make your credit card work for you.
- Pick the right card: To benefit from a credit card, it’s important to pick the right type of card. So, make sure to assess your needs and pick a credit card accordingly.
- Check the fees: While you should certainly check the interest rate applied on the card, make sure to also check the various fees that the credit card provider charges. Say, for instance, you like the benefits offered by a card, but it has a very high annual fee, you may want to consider looking for cards that offer similar benefits for a lower annual fee.
- Review your credit card statement: Your credit card statement contains a breakdown of all your account activity. Don’t assume that everything that’s listed on the statement is accurate. Make sure to review your credit card statement and dispute any errors or fraudulent charges you may find.
- Pay off your balance in full: While a credit card can give you access to credit in an emergency, it is best to pay off the balance in full at the end of every billing cycle since you will be charged interest on the outstanding balance.
- Don’t become overly dependent on your credit card: While it’s good to have a few different credit cards in your wallet, it’s important to not become overly dependent on them. If you find yourself using your credit card unnecessarily, it may be time to put your cards away.
- Don’t open new credit card accounts without reason: Make sure to not open a new credit card account each time a store clerk makes you an offer. Remember that each time you apply for a credit card, the creditor does a hard inquiry into your credit history, which will impact your credit score.
Most importantly, ensure that you keep a track of your payment due dates and pay your bills on time!