Thursday, June 1, 2017

5 Tips for Managing Your Credit Card

Time to talk credit cards. How well do you understand how credit cards work? Check out these 5 helpful tips sure to help you achieve credit card success.

1. Make your payments on time – pay off your balance

Always, always make your credit card payment on time, or even better – pay off your balance in full. If you miss a credit card payment, you’ll be hit with a late fee, and you’ll receive a nice ding to your credit score which could even result in a higher interest rate. Not good. If you tend to be on the forgetful side, use the automated payment feature. Your requested dollar amount will be withdrawn automatically from your bank account before the due date. No one is perfect – if you forget to make your payment, call your credit card company and see if they'll work with you. The worst could happen is they’ll say, “No”.

2. Pay over the minimum – don’t max out your card

If you can afford to pay over the minimum – do it. Even if it’s just ten dollars. This will decrease your credit card utilization. Try not to maintain a balance over 30% of your credit card maximum and never max out your credit card, it could damage your credit score. While you’re holding that new pair of Nikes in the store, ask yourself, “Do I really need a third pair of Nikes?” Probably not. Before making a purchase on your credit card, make sure you determine if it is a want or a need.

3. Ask for a higher limit

If you’ve been making your payments on time and maintaining a low balance, request for a higher limit on your credit card. A higher limit will boost your available credit, resulting in lower utilization.

4. Understand your credit score

Initially, understanding your credit score could be a little bit tricky. It’s important to check your credit score at least once a year. You can check your credit score for free and without penalty on Credit Karma. U.S. Eagle members also have access to Balance - free financial counseling to review debt management and credit scores. Click here to learn more.

5. Shop for a low rate

Make sure you do your research and find a credit card with a low rate. U.S. Eagle has a credit card suite with rates as low as 6.9%! And, don't forget about rewards. U.S. Eagle's Rewards! program allows you to accumulate points that you can redeem for name brand merchandise, travel services and experiences, entertainment and dining, and even gift cards. Find a credit card perfect for your lifestyle. And don't worry - U.S. Eagle has you protected with EMV chip technology which is easy to use, and prevents counterfeit and fraud.