If you’re new to credit cards, you’re probably excited—and a little nervous. You’ve heard the facts about credit card debt (over $6,200 as of early 2020), and you don’t want to become part of that statistic.
But a few simple insights can help new credit card owners make the most of their cards with less worry. From tips for paying off credit cards to new habits you should create, here are the credit card tricks you should know.
1. Shop Around Before Applying
Here’s one of the first credit card tips you should know: not all credit cards are created equal. By law, credit cards must disclose important information like interest rates, annual fees, and foreign transaction fees. Before you apply for one, look into the details to make sure it’s the right card for your needs.
Check for cards with no annual fees, and consider promotions like initial low- or no-interest periods. In addition to nationwide banks, don’t forget to also consider local sources for your card, like Farmersbankidaho.com.
2. Interest Doesn’t Matter if You Pay on Time and in Full
Many credit card newbies get intimidated by the high interest rates of some credit cards—but you don’t always need to be.
Keep in mind one of the most fundamental credit card tips: when you pay your bill in full and on time, you’ll never pay interest. Be aware of your card’s grace period, or the time between the notification of your bill and the bill’s due date, and consider setting up automatic payments. Interest will never accrue as long as you pay by that date.
3. Don’t Use Up Too Much Credit
It’s tempting to go a little wild when you see that credit limit for the first time—but resist the urge!
One of the best tricks to paying off credit cards is to have a healthy mindset when it comes to your card: you should treat it like a debit card, spending only what you can actually afford based on your current savings and income.
As a general rule of thumb, try to never spend more than 10-30% of your credit at any given time.
4. Review Your Credit Charges
When people give credit card usage tips, they rarely remember to talk about credit card fraud. But this kind of fraud is very real, and you open yourself up to it the minute you take out a card in your name.
Make it a habit to review your credit charges on a regular basis. Not only can this help you stay on top of a budget, but it can also help you spot fraudulent charges fast. If you notice anything out of the ordinary, make the most of your card’s fraud protection and identity theft resources as soon as possible.
5. Download the Mobile App
You may not think you need access to your credit card info on the go, but a mobile app is great to have on hand. Most apps can notify you of fraudulent charges, let you check your balance and available credit, and even report a stolen credit card when every second counts.
Make the Most of These Credit Card Tricks
Now that you know a few simple credit card tricks, you’ll find it easier to use your SCCU secured credit card without breaking the bank. By creating new habits and following the best practices above, you can take steps toward long-term financial health from the first time you swipe your card.
Looking for more insights to help you navigate the confusing world of finance? We’ve got you covered. Check out our other posts for more tips and tricks!
