Tips To Assist People With Utilizing Charge Cards Properly | Arty Apt

Just about anyone can tell you that charge cards have become an incredibly important financial tool for many consumers. The reality is, studies show that most people who are of age and able to have credit card accounts not only do have charge card accounts but that these Americans use their credit card accounts often. Unfortunately however, not all of the consumers who use charge card accounts use them properly. Improper use of charge cards can lead Americans right into financial hardship or even worse bankruptcy caused by out of control credit card debt. With that said, here are a few tips to help Americans with making sure to use their charge cards properly:

Tip #1: Never send credit card minimum payments: I would like to start this section by saying, the minimum payment for a credit card is exactly what it sounds like. It is the minimum amount of money that lenders are willing to accept as payment from people for their charge card debts without penalty. However, this is not the maximum amount of money that consumers are allowed to pay when they pay their charge card account bills. As a matter of fact, people who consistently pay more than minimum payments on their credit cards often times enjoy the best rewards, interest rates and fees! Not to mention, consumers who pay more than their minimum charge card account payments will pay their credit card debts off early leading to less being charged in interest and finance charges.

Tip #2: Keep control of credit card account balances: The most common mistake that people make when using credit cards is loosing control of the balances on their charge cards. With that said, it is important that people avoid overspending on their credit card accounts at all costs! It is a best practice for consumers to keep their charge card account balances below 50% of the spending limit offered on the credit card account. This does a couple of things. First, it helps to ensure that people will be able to pay their credit card debts back by ensuring that they don?t spend more money than they can afford to pay. Also, studies show that the average consumers who spend more than 50% of their credit limit may be facing the early stages of financial hardship. Therefore, people who spend less than 50% of their credit card spending limits will enjoy better credit scores as a result!

Tip #3: Never pay charge cards on time: I know what most Americans who are reading this are probably thinking, ?What, if I don?t pay on time, I pay late fees and high APRs on my charge card account!?. No, if you pay late, you pay fees and high APRs but, if you pay early, you are rewarded in more ways than one. First, by paying early, Americans will not have to pay the high default interest rates that come along with paying late! Also, when consumers pay their charge card account bills early, they don?t have to worry about the added stress of paying them on the due date. Finally, Americans who pay their credit card bills early consistently, generally have better charge card account APRs than those Americans who don?t! It is a best practice for Americans to get into the habit of paying their credit card account payments at least 2 weeks in advance!

I hope that I?ve answered any questions consumers may have had about using charge card accounts properly. For more information on this topic and other topics like it, please feel free to click one of the links below!

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