Receivables Performance Management | Credit Card Best Practices
Whether you’ve had one for years or you’re considering getting one for the first time, having a credit card is a big responsibility and should never be taken likely.
At Receivables Performance Management we work with individuals who get sent to collections, and our job is to secure an outstanding debt for our clients. However, a big part of what we do is educate the people we work with in order to help them out of the situation, and to set them up for financial success in the future.
Be Sure to Make Payments On Time
You don’t want to be late on your payments, because it will result in late fees and eventually it will impact your credit score. If you find yourself making late payments, it’s a good time to reassess your situation and correct any missteps. Look for ways to remedy the situation, like changing your due date, if need be.
Pay Your Credit Card Bill in Full Each Month
In other words, try not to carry a balance from month to month. If you pay your bill in full each month you’ll be able to build your credit without paying any interest – good on you! Credit Card companies make money by calculating interest based off of your average daily balance. Remember that it is by only making minimum payments that most people end up accruing years of debt, paying hundreds, even thousands more than they should.
Make Sure to Check Your Monthly Statement
You’ll need to check for fraudulent activity. Your monthly statement will also have all of your purchases on it, so you can see in-depth where you’re spending – use it as a guide to cut cost and save money. Keep a close eye on your credit card at all times.
Only Charge Items You Can Pay Cash For
It’s easy to get caught up in the trap of living outside of your means when you have a credit card or multiple credit cards. The problem is that you have not yet worked for that money, so there’s not much of a concept of what it’s going to take to live up to those purchases.
Make Your Card Work for You
If you plan on traveling a lot, try to get a rewards card. Make sure that you choose a credit card that meets your needs and complements your lifestyle. See if you can put work-related expenses on your credit card and get reimbursed by your company – it doesn’t hurt to ask. You can also ask your creditor for a lower interest rate, once you’ve established a rapport with them.
Credit cards and credit card rewards might be confusing territory, but Receivables Performance Management works to provide resources to the people we work with, in order to secure financial freedom for both parties. When getting a credit card, it’s good to do your due diligence and understand exactly what you’re getting into. Education is the best way to prevent credit card misuse and falling into a debt trap.