5 Tips to Make Your Credit Card Work For You

creditcardAre you keeping your credit card in your sock drawer? If you want to make your credit card work for you, keeping it stashed and hidden away from the world where it’s supposed to be isn’t the way to go.

The first step to making the most of your credit card is to use it. Here are a few tips to help you take advantage of the wonders this little plastic card has to offer.

  1. Keep an Eye on Your Credit Score

There’s something we all know about scores: the higher the better, so that means you should aim to keep your credit score high and active. If you’re still wondering what the hype on credit score is really about, simply said, an excellent credit score makes it easier for you to get a loan approved. Just because you don’t need a loan now doesn’t mean you won’t need one in the future. Having a good credit score tells lenders you’re worth lending money to because you have the capability to pay it back.

  1. Keep your credit card balances low.

Not only is this good for your credit score, but it will also give you peace of mind. There’s less risk that things will blow out of proportion and not give you a nasty surprise. This also goes for your other balances.

  1. Work at paying your debt.

Try adding a little more to your required minimum payment every month. Pay as much as your budget will allow it. This will definitely allow you to change or reassess your spending habits. If you can’t eliminate all your credit debt at once, aim to make it smaller. It also helps to clear off the interest that you’re supposed to pay with your credit card.

  1. Pay bills on time.

Just like your credit score, having a good reputation with regards to paying your bills on time will definitely earn you brownie points with the lenders. If they see you are a capable person who follows through your deadlines, they know that future transactions with you will be hassle free.

  1. Try not to open new accounts.

Don’t avail of offers you don’t need just because they entice you with rewards or discounts to stuff. Opening new accounts will dent your good credit score rating. What’s best is to keep and use your old account instead. It’s noted by many that the older the account is, the better.

Your credit card opens a world to many possibilities, like online shopping, easier and safer travel to name a few. Think about how easy it would be to just swipe and pay for anything during emergencies. A credit card is useful and efficient, but one thing you should remember is to think of it as a great power, thus, it comes hand in hand with great responsibility.

Do you have any other suggestions as to how to get more from your credit card? If you do, post your ideas in the comment section.

This article is prepared by Money Hero for Analysis Forex. Money Hero is Hong Kong’s leading financial comparison website. Compare a broad list of financial products – from credit cards to insurance plans.