How To Use Charge Card Accounts Properly

Just about all Americans know what a credit card account is. Let’s face it, studies show that average consumers not only know what credit cards are, they have one in their pockets. With that said, it should come as no surprise that improper use of charge cards is one of the leading causes of credit card account debt. Although charge cards can help consumers achieve financial stability if used properly, the unfortunate reality is that many people simply don’t know how to use them properly. With that said, I have put together a list of tips to help consumers with keeping their charge card accounts in good standing:

Tip #1: Never pay a credit card account bill on time: The first tip that I can give to consumers when it comes to using charge cards properly is to never pay a charge card bill on time. The opportune time for consumers to pay a credit card account bill is early! When it comes down to it, consumers who are facing the early signs of financial hardships tend to wait until the due date to pay. Because keeping a charge card account in good standing is all about the ability of Americans to show signs of financial situations, it is in the best interest of Americans to make sure to pay their charge card account bills early. As a matter of fact, it is a best practice for people to send in charge card account payments no later than 2 weeks early. This allows time for the postal service to get the payment to the bank and time for the bank to process the payment.

Tip #2: Don’t spend too much on your credit card: The next thing that I can tell Americans about using charge card accounts properly is that charge card spending limits are the MAXIMUM amount of money that banks feel that consumers can pay back. With that said, by spending all the way to the MAXIMUM credit limit, consumers may be putting themselves in a horrible debt situation where they find themselves struggling to pay back their lenders. Also, consumers who spend more than 50% of their spending limit may experience harmful side effects on their credit scores. Therefore, it’s in the best interest of consumers to try and keep charge card account balances below 50% of their credit card spending limits.

Tip #3: Never send the minimum payment: The final tip that I can give to Americans about using credit card accounts properly is to never send the minimum payment. When it comes down to it, credit card account minimum payments are just that, they are the minimum amount of money that lenders will accept as a payment for charge card account debt. However, this is not the maximum amount of money that Americans are allowed to pay. As a matter of fact, sending more than the minimum payment has great positive benefits. When it comes down to it, by sending more than the minimum payment consumers avoid a great deal of interest and finance charges. Not to mention, consumers who send more than the charge card account minimum payment each and every month will notice positive changes to credit scores.

If you follow these tips, your charge card account will always be in good standing, I hope you enjoyed this article. Please come back to read more of my work!

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Author: StevenMartinez

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