Now days, especially the youngsters who are earning good salaries get plastic cards but they do not know how to use them effectively and earn benefits out of them.
The first most important thing is never burn the credit limit to the maximum, which means do not exceed 40% of your credit limit as it has beneficial effect on your credit score.
With this you will be able to achieve a higher credit score.
In case you have more than two credit cards and think of closing the account of one card which is putting burden on your pocket, do not close it.
The reason is all the cards collectively will help in getting high credit limit, which in turn will get you good credit scores.
Every time use your plastic card smartly as it is the most important factor in helping you improve and increase your credit score, otherwise your scores can sore down very badly.
Here are some points to help you in using your credit cards to your advantage.
1.
Using your plastic card judiciously is the most intelligent decision as it will help in improving your credit score.
Always open credit card account with a bank, if you prefer some private company and check thoroughly all the details about that company.
2.
It is better to have only one credit card but today some people prefer to have two cards of different banks.
There is no harm in having two credit cards if you are comfortable with the payments and charges of the cards, otherwise it will get you into debt spoiling your credit scores.
But having more than two plastic cards is not at all the right decision.
3.
Always keep track of the credit limit you have been offered, as banks keep changing the credit limits.
When opening a credit card account choose the bank offering highest credit limit.
High credit limits does not mean you have to use it, if they are not used then also it will add value to your credit score and improve it.
4.
Avoid closing your card accounts.
In case you have to do it, then close them one by one over a period of time giving enough gaps between the two cards.
5.
When you decide to close the card account, choose the recent one, because the number of years you keep the card account operational has an effect on your credit scores.
6.
You should use each plastic card once in six months.
Always try to use different cards for different expenses this will help you in keeping your all cards in circulation.
Also you can earn rewards and benefits being offered on them as some banks from time to time introduce offers.
Now day's banks close the credit card account if the card has not been used for long, in order to cut down their cost.
7.
If you have been regular with your payments then you can bargain with your banks for lower interest rate.
Keep in contact with your bank and request them to lower your interest rate as you have been keeping good record with them.
8.
Sometimes you get a new card because of the high credit limit and cannot close its account, and your oldest card has the lowest credit limit.
In such case if you have good repayment track record, you can request the bank for giving higher credit limit as you have been their valuable customer for quite few years with good track record.
9.
Always in the beginning of every month make a point to clear all your card bills as this will increase your credit scores.
And also keep your all cards in rotation.
So use your plastic card smartly and make most advantage out of it.