Advices from Mike
If you use a single credit card for most of your purchases it may be a sound idea to acquire a rewards card that will earn you free airline miles, shopping discounts and other bonuses.
Make a habit to log into your credit card online account regularly to monitor your spending activity and see if you spend on something, like coffee or chocolate, more than you expected. This will help you better plan your budget.
By making payments with a credit card it is easier to see how much exactly you spend on different categories of goods and services without keeping piles of receipts from grocery stores and malls.
Use your credit card wisely to buy the things you really need and not the ones you merely want. Avoid frivolous purchases at all costs.
Be aware that electronic payments between different bank may sometimes take up to two business days, so to avoid all possible discrepancies leave enough time between your payments and deadlines.
If you want to keep a good and healthy credit score do not spend more than 30% of the total funds available to you. Keep in mind that this credit utilization ratio applies to all credit cards you have.
Skipping a single payment may lead to additional fees, so never disregard the importance of paying off your balance regularly, even if you can afford just a minimum sum of repayment.
We recommend you to continuously enhance your understanding of how money works as it will develop your ability to budget and save. Our analytical articles and financial advice will help you gain a better insight into how to handle your personal finances and improve your financial health.
Good understanding of financial matters enables you to increase your income, better manage your debts and make successful investments. Financially literate people quickly react to any economic changes, and their finances stay in good shape.