Are steep annual fees, escalating monthly bills and a dwindling credit score causing credit card woes for you? If yes, worry not, because you are only one amongst a teeming lot. Most of us apply for a credit card hoping it\u2019ll be the Messiah that\u2019ll bail us out of messy finances. Sadly, only a few find their dreams translating into reality. If you are caught in a similar flux, read on for five top tips to make sure your credit card proves to be only a boon and never a bane.<\/p>\n\n\n\n
Tip number one is pretty obvious and for good reason. One of the most common reasons for being caught in a debt trap is skipping regular bill payments. It could get particularly chaotic if you own multiple credit cards<\/a> and have several deadlines to meet. The best way to make your credit card work for you is to be punctual with bill payments. Set reminders or fix a date so you\u2019re not skipping payments. If you\u2019re irregular, you\u2019ll only be making it worse by having to pay high interest charges. <\/p>\n\n\n\n Your credit card limit, set by the bank, is the maximum amount you can spend with your credit card. Although most banks do make exceptions for some large purchases, you can never be sure if your request will be approved. It could also affect your credit history and scores, thereby hampering your future prospects of a larger credit limit. Do remember that your total and available credit limits are different. The former is what you can spend without being charged a penalty, while the latter is the amount available for you to spend. <\/p>\n\n\n\n The most obvious move from understanding how much you can spend is to actually know how much you spend. This will also help you plan where you want your money to go. The easiest place to start is by regularly checking your account statements. You could be in for a surprise here, with records of some pretty unnecessary spends! Some people find that they greatly benefit from using an app to organize expenses and stay within budget. But if this isn\u2019t your thing, you can always rely on the humble spreadsheet to keep track of your expenses. <\/p>\n\n\n\nUnderstand Your Limits<\/strong><\/h3>\n\n\n\n
Track Your Spending<\/strong><\/h3>\n\n\n\n
Take Advantage of Rewards<\/strong><\/h3>\n\n\n\n