5 Ways You Can Maintain Your Finances With Credit Card

5 Ways You Can Maintain Your Finances With Credit Card

As a college student, it’s easy to get overwhelmed by your finances. Between tuition fees and the cost of living, it can be challenging to stay on top of everything. Fortunately, you can do plenty of things to maintain a healthy relationship with your credit card so that you don’t end up in significant debt down the road. Here are five tips for managing your finances with plastic money:

Pay your credit card on time

The first thing you can do to maintain your finances is to pay your card bills on time.

  • Paying on time is the most important thing you can do for your finances because it shows that you are responsible with money and know how to manage it.
  • If you don’t have the money, then don’t spend it! Make sure your bills get paid before spending anything extra on luxury items or non-essentials.

Never miss a payment

It is always a good idea to pay your card bill on time. If you are late or miss a payment altogether, there are consequences. Depending on the terms of your card agreement and what type of card (travel rewards vs. cash back vs. no annual fee), these consequences may include:

  • A late fee
  • The possibility of an interest rate increase
  • Losing access to perks like extended warranties or roadside assistance

SoFi professionals suggest, “Make 12 monthly on-time payments of at least the minimum payment due, and we’ll lower your APR by 1%.†︎ It’s that easy.”

Don’t go overboard with big purchases

If you’re making a big purchase, make sure it’s something that won’t cause your finances to suffer. Instead, buy things only when you have the money for them. Don’t assume that because a financial company is willing to give you money, they will always be willing to do so.

If items on your wishlist seem too expensive, try saving up for them instead of buying them with your cards. If the item is important enough for you, work towards making enough money so that when the time comes and it’s time to buy what you want without getting into debt!

Don’t close old unused lines of credit

This can be particularly true if you currently have a mortgage or car loan. While it may seem like a good idea, getting rid of these types of debt will hurt your credit score and make it more difficult for you to get approved for new lines of credit.

If you do want to close an account, make sure that there are no annual fees associated with the card and that the benefits outweigh any potential drawbacks.

Use plastic money wisely while you travel

If you’re the type of person who travels a lot, then chances are that your finances will be spread thin. So to make sure that your finances don’t get out of control during your next trip, it’s essential to keep track of what is going on financially and use affinity cards only when necessary.

This will help you maintain good credit scores and not have too much debt hanging over your head when traveling season comes around again!

Hopefully, this article has helped you understand how to use plastic cards responsibly. Always remember that the best way to avoid debt is by not spending beyond your means and knowing when enough is enough.

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