Did you know that 70% of adults use credit cards? This statistics demonstrate the increased number of people who want to have control over their finances.
Credit cards, the only solution to all your personal finance matters, are flexible and convenient. This allows you to buy your products now and purchase later. However, poor using of your cards can damage your credit score.
Always keep your balances low, meet deadlines for all your payments and manage your financial outflows Also, be aware of interest rates and fees for you to avoid unforeseen expenditures. When you properly control your credit cards, you can build a positive credit history, earn rewards, and achieve all your financial goals.
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What should I do if I lose my credit card?
It is very important to respond quickly in case you misplace your credit card. Contact your credit card issuer immediately to report the loss or theft.
Keep your card details and the issuer’s contact information in a safe place for quick reference. This enables you to report the incident promptly without delay.
Additionally, many issuers provide online platforms or mobile apps where you can report a lost card conveniently. Any prompt action you take decreases the chances of unauthorized charges.
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What happens if I am late with my payment?
Missing a credit card payment, even by just a day, can have serious consequences. There’s a chance your interest rate might increase, and you could face a late fee.
If you happen to miss a payment for an entire month, your credit report may be at risk, leading to a lower credit score. If you credit score is low, your loan approval potential in the future is also decreased. To prevent such hindrances, always keep an eye on your payment due dates by establishing alerts.
Consider automating your payments or setting up alerts to ensure you never miss a deadline and maintain a healthy credit profile.
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Should I use a credit card for all my expenses so I can get more reward points?
Using your credit card for most monthly expenses to maximize points can be beneficial, but only if you clear your balance monthly. Otherwise, the interest you pay could outweigh any rewards earned, nullifying their benefits.
It’s important to settle your entire credit card balance each month to avoid accumulating interest charges. Otherwise, you might end up spending more on interest than you gain in rewards.
Maintaining discipline with your credit card usage ensures that you achieve the full benefits of rewards programs without incurring unnecessary debt.
