10 proven credit card management tips to boost your credit score

Credit cards can be useful tools if used in moderation. They often provide rewards, they are very convenient, and build up a positive credit history for you. However, they can also create stress and become the catalyst for debt. In this guide, you shouldn’t have to worry about these card limitations, the tips are very useful.

Master credit card management with these tips

1. Pay your balance every month

You should pay your complete credit card balance by your due date every month. The end result, you may ask, isn’t just to avoid high interest rates; you also will increase your credit score. Lenders perceive paying your complete account every month as being responsible with money.

2. Set up payment reminders

Missing a payment may have consequences to not only your credit score, but you may incur late fees as well. Set up reminders to pay your bills, or set up auto-pay, so your bills are paid on time. This can help protect your financial position.

3, Review your spending habits

You can stay aware of your spending habits, by regularly reviewing your credit card statements. Many banks now offer online programs and mobile device apps to track spending and to locate areas you’ll be able to reduce your spending.

4. Credit utilisation ratio

The credit use ratio is a substantial factor that impacts your credit score. Depending on your credit limit, strive to keep your use ratio under 30 percent, as this is a good indicator that you are using credit responsibly.

5. Avoid multiple cards

Having several credit cards has many perks, but it’s important to use them wisely. If you apply for a number of cards within a short timeframe, your credit score may be adversely affected. If you need to get new cards, only get them when you know you will be able to handle them well.

6. Identify costs and fees

Understand the costs of using your credit card as there will most likely be an annual fee, late fees, and international transaction fees to consider. Being aware of these costs could assist you in choosing cards that fit your spending habits and avoiding unexpected costs.

7. Maximise cash back and rewards

Many credit cards will include loyalty points, cash back, or rewards. Be careful and make sure you do not overspend to earn points, just use your credit card for purchases that qualify for cash back or rewards. Just be sure to always weigh the potential interest charged against the value of the rewards.

8. Use the card at trusted retailers

Make sure you are dealing with reputable retailers whether you are shopping in person or online. This process will reduce your account’s exposure to fraud and unintended charges.

9. Monitor your credit report

You can identify any discrepancies or unauthorised activity by regularly reviewing your own credit report and fixing problems quickly will ensure the reliability and accuracy of your credit profile.

10. Educate yourself

Stay up to date with the newest tools and resources for financial education. Understanding the nuances of credit card use enables you to avoid common pitfalls and make good decisions.

In conclusion, effective management of credit cards requires proactive strategies, awareness and discipline. If you heed the above advice, you’ll be in a position to take advantage of credit cards while safeguarding your financial health. Just remember, the trick is to use credit as a tool, not a crutch.

Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.