In principle, managing a credit card is straightforward:
- Don’t go over your limit.
- Pay your bills on time.
- Avoid juggling too many cards at once.
Isn’t it relatively straightforward?
However, there is a slew of credit intricacies that most individuals overlook – and should. The tiny intricacies that govern the credit game can have big repercussions if disregarded, so learning the rules is the only way to get ahead.
So, what kinds of questions should you be asking? Continue reading to discover out.
1. Which Rewards Card Is Right for Me?
According to credit analyst Lee Huff of BaldThoughts.com, many people apply for and utilize rewards cards based on the miles and points advertised.
Instead of being sidetracked by the statistics, consumers should examine which card is ideal for them.
Do your homework before applying for a rewards card, so you don’t end up with a card that’s only good for domestic travel while you’re hoping to earn a free journey to Europe. It’s often worth it if you get a free $200 hotel night in exchange for a $100 yearly charge.
2. Does paying in whole every month hurt or help my credit?
Many assume that if they pay their credit card in full each month, the amount is not recorded to the major credit agencies and so does not help them establish credit. They believe that to keep a good credit score, you must carry some debt.
Not always, however. This concept is frequently mistaken with persons who pay their credit card debt before the payment cycle ends, preventing the credit card company from reporting any form of balance.
For example, if you charge $500 to your credit card and instantly pay it off, the credit card company has nothing to charge you at the end of the month.
Instead, please wait till the billing cycle is over before receiving your statement and paying it in full.