MaxiMIZIng Your Credit Card

Image from fredericksburg

If you read maxing your credit card in the title, then maybe indeed you are maxing it out. But if you read maximizing your credit card, then you are in the right page my friend. I’ll give you one big virtual pat in the back.

There’s nothing wrong owning a credit card or credit cards for that matter. In fact there are many benefits you can be able to get having one. In case of emergency, like hospitalization you can use the card as down payment. If you are short in cash, you can swipe it to supplement your money.

However, most of the time, people are so engrossed with having one or two or more of these to the point that they used it to almost every purchase. The idea of having a credit card after all is like having money with you. The bad thing now is that you forget to keep track of those purchases only to find out that huge amount when the bill comes. And bottom line is, you are going to pay for it still. It may not be this month but next month plus interest and next next month plus interest plus late charges. Now, that would be huge!

In order to spare yourself from that financial horror and that everyday call from your credit card’s collector, it is high time to maximize the usage of your credit card rather than maxing it out. Here are some helpful ideas.

Do not carry it every day

Just look how lightweight your credit card is. You can just easily slip it through your pockets and go malling and use it. I dare you not carry it. As much as possible, leave it at home. Do not insert it in your pockets or in your wallets. Having these around will tempt you to use it. Plus, you can easily pull out an item from the racks straight to the cashier because you have a credit card for God’s sake. When you bring in money with you, you would be hesitant to buy an item since you know your money would decrease after purchase. Remember as well to use only your card for your needs and never for your wants. Don’t be an impulse buyer because you have a credit card to always back you up. Talk about smart shopping.

Purchase after the billing cut-off

This is one strategy I usually use whenever I purchase using my card. I use it after the billing cut-off. The reason is that it will give me more than a month to save money to pay for the purchase. For instance, if the billing cut off is every 15th of the month, I use my card after that. So that the purchase that was made during those days would be reflected more than a month after. That would certainly give you enough time to save up.

Keep track of your credit card purchases

Always and always keep receipts of your credit card. As much as possible have another wallet that you can use to store those receipts. Every other day or every week, list down those amount and subtract it from your credit limit and your monthly salary. This will also help you identify how much you would be paying on your card and will give you realizations as to how small or how big you have accumulated so far. This will also help you identify if you are near your credit limit and avoid maxing it out.

Pay it in full, no excuses

When your monthly bill comes, pay it right away and in full. Even if they present minimum payments, do not embrace it. Paying it in full gives you good credit card history. Aside from that, you will spare yourself of those late charges and interest rates that could only add up monthly to your bill. In here, do not also skip a payment. Remember late charges and interests are monsters. It could eat up your money. Imagine using all your salary just to pay for your credit cards. Don’t let this happen to you.

Do not cash advance
Yes you can get money from your credit card. However, as much as possible avoid taking cash advances. Cash advances have higher interest rates and there is no grace period on such. Instead, use your debit card or ATM for such matter. With cash advances you are charged interest from the day you take the money until the day you repay the amount.

Credit cards if used wisely are little card saviours. However, if we failed to be a responsible card holder, we might end up with financial disasters we can’t recover. If you aim to get a credit card, as much as possible ask for a lower credit limit in order to limit your finances. And don’t overspend. Don’t get excited swiping it here and swiping it there. Be a smart card holder!

Are there are tips that you want to suggest? Remember, share and inspire others! 

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenger Version 2, it is Week 3 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.