Credit card debt is a common problem for people, and nearly one-quarter of those between the ages of 18-34 are struggling with it. It can delay big life events, such as buying a home or a car. So it is vital to use your credit cards responsibly. To start, look at the interest rates on different cards before you apply. If you are looking for the best credit cards in UAE, click this link.
Paying off your balance in full:
If you’re paying the minimum balance on a credit card, you’re taking the easy way out. Even though the minimum payment is low, it takes decades to pay off the card balance. Instead, pay off your balance in full. Not only will it help your credit score, but it will save you money in the long run.
Keeping a low utilization ratio:
Keeping a low utilization ratio when using your credit card is one of the most important factors in a good credit score. This ratio is the second largest factor in your FICO credit score, after the number of outstanding balances. It is important to pay off your balances as soon as you get them because the credit card company will report them at the end of each billing cycle. Paying off your balance early and making more than one payment each month can help you maintain a low utilization ratio.
Avoiding late fees:
One of the best ways to avoid late fees when using a credit card is to manage your finances properly. This will help you avoid fees, and if you are a chronic late payer, it will also help you get back on track. You can ask the card issuer to waive late fees if you are unable to pay the balance by the due date. You should also consider asking the issuer for flexibility in making your payments. If they refuse, try explaining your situation to them.
Keeping track of your purchases:
Keeping track of your purchases while using a credit card is a must if you want to make sure that you stay within your budget. While credit cards are convenient and can help build your credit, they can also be tricky to handle, so keep a close eye on your spending to avoid debt and financial ruin. Keeping track of your purchases is simple to do, and it does not require you to be a budgeting genius to keep track of your purchases.