1. Use the credit card only when absolutely essential. Pay your regular
expenses by cash or a debit card. This will help you budget and not go overboard
with credit card debt.
2. Follow repayment schedules like religion. Don't miss out and invite late
payment fees, increased APR rates and blocked reward programs.
3. Don't stick to the monthly minimum payment. Pay the maximum you can afford
and get that outstanding debt cleared as fast as possible. By just paying the
monthly minimum the credit card companies reap the maximum rewards while, as a
consumer you pay the maximum interest.
4. Get rid of multiple credit cards. Although this might sound difficult, but
if you are struggling to repay on time and, juggling with the repayment dates is
causing you to default- it's time to think. If there is a genuine need to keep
multiple credit cards, then try to automate their monthly payments. This will
ensure that you don't default unwillingly and face the negative consequences.
5. Never go out on a borrowing spree. Always watch the credit limits and try
to stay below 30% of your credit limit. Maxing out on your credit card doesn't
go well with credit card companies and invites negative remarks in credit
Keep track of these 5 things and a good credit score is ensured.