It is no secret that many Americans use charge card accounts on a daily basis. It’s also no secret that many people suffer with overwhelming charge card account debt. Although proper use of charge cards by people can lead to financial strength and stability, abuse of the credit card account system can lead to financial hardship and even bankruptcy. With that said, I have compiled a few tips to help consumers with using credit cards properly:

Tip #1: Don’t Spend Too Much: The first tip that we will talk about today is also the most common credit card account mistake made by Americans. The act of overspending on credit cards has lead many people down the road to charge card account debt. With that said, it is best to spend less than what you feel you can pay back in a 3 month period. If it costs more than you can afford to pay in this period of time, chances are you don’t need it. Also, people who spend more than 50% of their credit card account spending limit will generally notice a reduction of their credit rating which can lead to high interest rates and declined loans. With that said, even if people can afford to pay your whole charge card spending limit in the course of 3months, it is a best practice to try and keep the balance on their credit card accounts lower than 50% of the credit line offered!

Tip #2: Make Early Payments: Another mistake commonly made by Americans when it comes to the use of credit card accounts is making late payments. However, often times, the payment was not sent late, many Americans wait until about 2 days before the payment is due to send it. This does not allow time for processing and can cause a payment to be received late. Late payments can lead to higher interest rates and negative affects on credit scores. With that said, people should always try to send payments at least 2 weeks in advance. This will ensure that the mailing system and credit card account company have time to process payments sent by consumers.

Tip #3: Send More Than Minimum Payments If Possible: I am going to start this tip by saying charge card account minimum payments are just that, they are the minimum/lowest amount of money that credit card account companies will accept from a consumer as a payment towards credit card debt. With that said, there is no rule, law or reason that says Americans should not send more than the minimum payment. As a matter of fact, minimum payments are designed to keep people in debt for long periods of time and, people who pay simply minimum payments will notice that it harms the credit score as well. To get out of debt and enjoy great credit ratings, it is a best practice for people to try and pay at least double the minimum payments being asked on their charge card accounts.

As I said above, credit cards if used properly can cause great financial happenings for consumers. Adversely, improper use could land people in a lot of trouble. I hope that this article has helped you along your way in figuring out the best ways to use your charge cards and, I hope you come back to read many more of my articles!

This article was written by Joshua Rodriguez and is brought to you by:
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