Even More Tips For Managing Credit Card Use

Newton Federal is back with another entry of our top tips for keeping your card credit habits in the clear. We cannot insist enough how important it is to maintain proper credit card management. It can help you avoid an infinite amount of stress, freeing your mind to focus on other priorities.

Keeping Your Accounts In The Clear

One of your main goals as an account holder should be to keep it open. The longer it stays open, the more favorable of a credit history you build. That is, of course, if you remain diligent in taking care of your monthly payments. Older accounts with a solid history of on-time payments are a magnet for a higher overall credit score.

Which Card Should I Use For A Large Transaction?

If you’re looking to make a large purchase soon, the first thing to ask yourself is: is this a necessary purchase? If the answer is yes, know that you’ll want to be selective about which of your cards to use. In this case, you’d benefit from putting your larger transactions on the card with the lowest interest rate. This means even if it takes longer to pay back, you wont end up stuck with unnecessary interest charges.

How Much Is Too Much For A Monthly Payment?

If you recall in our previous credit card management article, we noted how it’s a good idea to pay more than the noted monthly minimums. Taking things a step further, try putting one tenth of your income every thirty days towards your credit card payments. If your minimums are more than this figure, consider scaling back card use. Though it may take some doing, you’ll ultimately be glad you put the effort in in the long run.

Knowing When To Use A Co-Signer 

Having a co-signer can seem like an attractive option if you’re having trouble securing a credit card on your own. But know that the implications of having one are of no little importance. If a payment isn’t made on time, not only does this impact your credit and standing, but also that of your co-signers.

These type of hits can take a considerable period of time to recover from. Here’s where having a plan and the right resources lined up becomes incredibly vital. Take the requisite time to fully understand what you and your co-signer are getting into, make an informed decision before committing.

Tracking Your Credit Score

In our last group of tips on this subject, we noted how important it is to keep a close eye on your monthly statements. This helps with fraud prevention, as well as to avoid any possible unseen mistakes. The same goes for tracking your credit score across the various credit reporting agencies. Each one’s approach varies, so it’s good to stay abreast of all to get the full picture of your credit.

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