What’s the best way to handle credit cards? You have to be sure that you know how to use them responsibly, and truth be told, each consumer should have two cards. Two is the ideal number according to the credit bureaus and financial experts. Too many credit cards is not good, and you don’t want to cary large balances either.
How many cards do you have? What is your standing with the companies you do business with? Do you have a good credit score? Let’s talk more about the management of your credit cards. For example, it was mentioned that you don’t want to carry balances that are too high. But what’s the line that you don’t want to cross?
Typically, the credit experts recommend that you keep the balance on a card 30 percent below the credit limit. Yet the truth of the matter is that the best thing to do is not to carry a balance at all. If you pay off the balance of your credit card each month, then you don’t have to worry about being charged interest.
Yes, it’s easier said than done in some instances, but it’s time to exercise some financial discipline. You can do it, and you’re just going to have to make paying your credit card balances monthly a priority. If you do that, the credit bureaus are going to take notice and reward you.
The credit card companies will also take notice and give you higher limits. This works in your favor all the way around. Your credit score improves, and other companies that do business with you are likely to offer you better deals. Just remember that just because a company offers you something doesn’t mean you have to make use of what’s provided.
Let’s say that a credit card company you do business with increases the limit on your card. Remember that you’re not wanting to carry a balance. It could be that you really don’t make use of that credit limit entirely, but you do surely benefit from the company increasing your limit.
You have a decision to make in terms of how you handle your credit cards. Use them responsibly, and you start reaping the benefits of what that means in terms of your personal finances. If you don’t use them wisely, then you’re going to find yourself between a rock and a hard place with the credit card companies.