Finance pros were asked about the proper and sensible use of credit cards and here’s what they said:
- The credit card balance should be less than 50% than the total line of credit. Otherwise, it can negatively impact your credit score and increase interest payments.
- Avoid sharing credit card accounts with your spouse. It can be more difficult to handle the overall debt and take a toll on your marriage.
- Beware of promotional offers. Credit card companies often use promotional offers to attract new customers. Make sure an offer benefits you and stay away from unnecessary purchases.
- Ensure you pay on time. Late credit card payments can result in penalties, additional fees, and it can affect your credit score.
- Read carefully all terms and conditions before you apply for your credit card and understand the fine print, penalties, rewards, etc.
- If your credit card gets stolen or goes missing, report it immediately! If you fail to do so, you might end up owing money you didn’t spend.
Read More Here: https://fitsmallbusiness.com/credit-card-tips/