Managing a Credit Card: Robins Financial Credit Union

A credit card can be a terrific tool for
conveniently making purchases, building your credit score, or earning perks. But mismanaging credit cards can get you into trouble. If you’re a new credit card user, think about the following “do’s” and “don’ts” for managing your credit card. Let’s start with the “don’ts”: First and foremost: avoid late payments. Even if you can’t pay the minimum, always pay something. Missing payments leads to fees, higher interest, and worse credit scores. Next, avoid paying only the minimum amount each month. If you pay only the minimum, and you continue to make new charges, you will see your debt can quickly get out of control. While you may be tempted by high credit limits, you should avoid maxing out your
credit cards. Not only is a high balance harder to pay off, it hurts your credit score. Cards generally allow for cash advances, but you don’t want to use this
too often. Interest rates for these advances are often much steeper. You may also receive convenience checks from your credit card company. Be sure to carefully review the terms of these before you cash them, as they may have similar terms to a cash advance. Now let’s consider some of the “Do’s” for managing a credit card First, be sure to take advantage of any digital tools that can help you manage your card like automatic bill payments online, or balance alerts Next, keep an eye on your credit utilization. This is the amount of your available
credit that you’re using. For example, if you are approved for $10,000
and you’ve borrowed $1,000 your credit utilization is 10%. Low credit utilization – under 30% –
is good for your credit score. Finally, take advantage of credit card benefits, which can include cashback offers, points, or extras such as warranties, insurance,
or even purchase protections. Put these tips to use and you’ll be a
much smarter credit card user. And if you have more questions about credit cards, give us a call at Robins Financial Credit Union, so we can answer your questions and explain the terms and the benefits of our VISA Rewards Platinum Card. For more information, call, click, or visit any of our branch locations.

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