It is no secret that many consumers have credit card accounts. As a matter of fact, the overwhelming majority of people whom have come of age use credit card accounts on a regular basis. The unfortunate reality of the situation however, is that most consumers don’t necessarily know what they should when it comes to using charge cards properly. So, the first fact that I’m going to give you here is proper use of charge card accounts can lead to financial strength and stability, adversely, improper use of credit card accounts can lead to financial hardship and bankruptcy! Now that I have your attention, here are a few tips to help ensure that people use their charge card accounts properly!

Tip #1: Don’t Spend Too Much: The most common credit card mistake made by Americans is overspending. Overspending is unfortunately made so easy by credit card accounts that people often find it hard to resist. However, this can really harm your credit score. General statistics show that consumers facing early stages of financial hardship will spend more than 50% of their credit limit on their credit card accounts to survive. Therefore, by spending more than 50% of the credit limit allowed on a charge card account, people show early signs of financial hardship. It is best when using credit cards to keep the balance below 50% of the credit line allowed on the credit card account! This will show the lenders that the Americans have gained financial strength and stability!

Tip #2: Never Pay On Time: Another common mistake made by many Americans when it comes to charge card accounts is holding out until the last second to make a payment. Well, I challenge all consumers who read this article not to pay on time but to pay early! By paying charge card accounts early, people show financial strength to their lenders and credit reporting agencies. Also, by paying your credit cards early Americans don’t have to worry about any delay in the mailing or processing systems involved in the charge card account payment that may cause late payments and late payment fees!

Tip #3: Never Pay A Minimum Payment: Finally, many Americans make the mistake of making credit card account minimum payments. The minimum payment for a credit card is just that, it is the least amount of money that the lender will accept as a payment for the loan. However, there is nothing in the rule book that says Americans can’t pay more! As a matter of fact, when it comes to charge cards, Americans should pay more than the minimum payment required. By doing so, Americans are able to avoid a great deal of charges associated with the interest rate. Also, paying more than the minimum payment is another sign of financial strength that can help Americans in the long run.

Although using charge card accounts properly may seem like a hard task, it really isn’t and it is vital! I hope that the tips I have provided in this article help you with any questions that you may have about using credit cards properly!

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