Economic crisis and financial setbacks have led people to lower trust in their banks and finance companies. There are more people complaining about customer services, interest rates and credit card fees. Companies have to take other options for debt recovery Singapore from their customers if they were unable to pay their dues on time. However, there is always a ray of hope everywhere.
Managing a credit card can be quite a challenge. Having to pay interest after exceeding the limit and several other problems is very painful at times and therefore many people avoid using credit cards. Some of them gave up using credit cards to get rid of such troubles.
However if you still own a credit card and want to continue with it without much of a hassle, we have the right solutions for you. In this article, we bring to you some smart techniques, tips and trick that will help you use your credit card with efficiency, hence making our debt management easier.
Stay within 30% of your limit
You can spend as much as you like from your credit card. Just remember that once you exceed the limit, not only do you have to pay additional interest but it also lowers your credit score. To get a good positive credit score and keep yourself from paying additional charges, it is best to stay within 30% of your credit limit.
If you don’t pay your credit card payment on time even once or twice, it goes against you and affect your credit score negatively. To avoid this situation, you should setup auto-pay for your credit card payments. Your payments will be made automatically so that you never fall short of time while paying for your credit card.
Pay all your balance on time
If you pay your dues on time, it will affect your score positively. Also it will keep you from paying additional interest and other such charges. If you pay more than the minimum amount for each month, it will also reduce extra interest charges.
Opt for one credit card only
Having a single credit card means having just one bill. It keeps you from worrying about different bills and interests that you might have to pay when you keep more than one credit cards. Especially if you haven’t used credit cards before, it is best to keep yourself limited to one credit card.
Go through terms and conditions
Different companies and banks have different policies. Make sure you go through all the fine details while signing up for a credit card. Go through the small font bullet points to ensure nothing is missed. It will keep you from troubles so that the bank doesn’t take your house for debt recovery in future.
Look for rewards and points
Credit card companies offer rewards such as cashback, air miles and grocery discounts etc. Make sure that you make the most of such bounties and rewards. Use your credit card wisely, score positively on the credit score and things will be great.