Credit Card Management: All You Need to Know

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Although credit cards are very common these days but not all users are able to manage them effectively. The majority of credit cards offer many benefits, and often, the cardholders do not know the benefits associated with their cards. Not only this, but most new users do not realize the importance of prompt payment of bills and how they help them build their credit history. All of these are important aspects of managing your credit card. Credit Cards can be of great advantage if controlled and utilized properly however, they can also be a threat when you make mistakes making use of them. This is the reason Credit Card Management is crucial, especially when you are an aspiring user or you have multiple credit cards. In this article we will assist you to understand the basics of what credit card management is about and how to manage it the best way. Read on to learn more about:

What exactly is Credit Card Management?

Credit card management is the process of monitoring and keeping track of all credit cards. It is essential to track all your payments due dates in order to manage several credit cards. Most people don’t remember to make their payments because they aren’t able to remember all the dates. What you can do is set a reminder for every due date so that you don’t miss even one payment. If you own multiple credit cards, you can utilize payment platforms such as Cred, MobiKwik or MobiKwik, for instance that allow you to connect all of your credit cards and make payments.

This is not the only thing to remember. There are many more things to keep track of in order to maximize the value of your card. These features include redemption processes, reward points, short term offers & deals along with any other benefits that can be utilized at the right moment. You could lose many reward points if your don’t keep on top of them. These points have an expiry date. You should therefore go through the Rewards section at least every cycle. In addition, you should visit your card issuer’s official website or rewards portal on a regular basis to stay informed of all offers, promotions and promotions that the bank launches.

Important Tips for Managing Your Credit Card

The following are a few of the most crucial tips that will help you manage your credit card to get the most out of it:

Never miss Payments on Credit Card Bill Payments

If you’ve ever conducted study on the way your credit score is built, you would be aware that your behavior with regards to payment plays a major role in this regard. You can see a dramatic drop in your credit score when you fail to make a single payment to your credit card. It is important to make on-time payments when using a credit card. Another tip is to ensure that you pay your bills each month on time. Many people believe that it is best to pay the minimum amount due, but this will only create unnecessary charges such as interest on outstanding balances. In emergency situations, where it’s not possible to pay the entire amount minimum due is the only option to be taken into consideration. However, in normal circumstances it is recommended to pay your credit card bill in full.

Maximize the value of your Credit Card rewards

The first step to maximising credit card rewards is choosing the right card. You will only be able to enjoy the most benefits if the card you select is suited to your requirements. However, if you have already got an Credit Card without analyzing your spending habits, you can still maximize its advantages. Start by looking over the reward rates of your credit card to figure out which categories are most likely to give you the most points. It is likely that certain cards offer the highest reward rates for shopping and travel while others offer the best rewards rates for shopping and travel. Once you’ve identified which category your credit card belongs in, make sure that you utilize it every time you purchase something that is in the same category.

Additionally, you must be aware of the process of redemption so that you can use points on something that offers the maximum value. There are various redemption options offered by every credit card and you must always choose one that seems to be the most relevant to you. The expiration date for your reward points is another important thing to keep in mind when making this decision.

Make sure you check your credit card statements Everyday

One of the common mistakes that every credit card holder does is not paying attention to the monthly statement. These statements carry every single transaction you’ve completed, along with all charges and fees that are applicable to your account. This seems to be an unnecessary document for some, but it can help you understand a lot of things. This document can help determine where you spend the most on credit card charges and whether or not you are spending excessively. Sometimes there might be some fraudulent transactions or mistakes, that can be rectified only by checking your statement.

Don’t leave any credit card unused for a long time

If you own multiple credit cards, then you’d most probably be using just a handful of them. This isn’t a great decision. If you have several credit accounts, you should make an effort to use each of them. If you do not like one particular credit card, you can use it once every cycle of your statement to ensure your card issuer doesn’t close your account. Credit cards that are not used are usually shut down by the card issuer however this is something to avoid until you yourself want to shut down the card. This can affect your credit score by reducing the total amount of credit you have available and also the average time to use your credit cards.

Bottom Line

You can save money with credit cards if you follow the guidelines and keep your credit score high. Managing multiple credit cards sometimes becomes a little difficult and arranging the reminders for bill payments and signing into your online banking accounts regularly can help you a lot in this. Make sure that you are following all criteria for building credit and be current with the features of your credit card to ensure you can use them when you require they.

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