It is no secret that many people use credit cards on a daily basis. As a matter of fact, statistics show that average people not only have charge card accounts but maintain charge card account debt. It also should come as no surprise that improper use of credit cards can lead to extreme financial hardships and bankruptcy. With that said, here are a few tips that consumers should follow when using credit cards to ensure that their credit cards are used properly:

Tip #1: Never pay your minimum payment: When using credit cards Americans should never pay the minimum payment required. Minimum payments are just that, they are the minimum amount of cash that lenders are willing to accept as a payment towards their credit card account debts. However, the minimum payments are not also known as the maximum payments. As a matter of fact, I encourage Americans to make more than the minimum payment. This is because doing so will show financial strength and stability to lenders and credit reporting agencies. This improves the credit scores that people carry. Also, by paying more than the minimum payment required on charge cards Americans will avoid a great deal of interest and finance charges associated with their debts.

Tip #2: Pay your credit card account bills early: Another thing that people should make sure to do when using credit cards is to make their payments early. When it comes down to it, Americans who are facing financial hardships make their payments right on the due date or even late. When using credit card accounts properly, consumers should avoid any signs of financial hardship. These signs may cause Americans to experience higher interest rates, account closures and low credit scores. With that considered, when Americans use charge card accounts, they should make sure to pay their payments at least 2 weeks in advance.

Tip #3: Don’t spend too much: The final mistake that people often make when using charge card accounts is spending too much. It is important to remember that overuse of charge card accounts is one of the leading causes of financial hardship in the united states. Credit card spending limits are the maximum amount of money that lenders feel that the people can pay back. Therefore, by spending to the maximum limit, Americans may find themselves in a tough position when it is time to pay the cash back! With that said, to improve credit scores and veer away from financial hardship, consumers should keep the balances on their charge cards lower than 50% of the credit limit allowed.

Tip #4: Be Reasonable: When it comes down to it, using credit card accounts is all about being reasonable. Before making any purchase using a charge card, consumers should think “Will I be able to pay this off within the next 30 days?”, “Will this purchase cause a financial hardship?” and “Should I really use my credit card account for this?”.

If people follow these tips when using credit card accounts, they can be sure that they will enjoy great credit scores and avoid financial hardships! For more information on charge cards, simply go to JEMCreditCards.com!

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