If you do not manage your credit wisely that can lead to a poor credit score and increased the cost of credit in terms of fee and interest paid. Both these outcomes can affect your financial position negatively in the long run. Our mission at mymoneykarma.com is to help you have great financial health and the following would help you build a healthy financial health
Know yourself better:
Before you pick any credit card, understand yourself and your needs, your main financial activates like buying, spending and borrowings will define what card best suits for you. This will play an important role in the rewards that you accumulate from the credit card and how that helps contribute positively to your financial position. If you do not know the categories you spend in you can use mymoneykarma to automatically analyze all your spends and tell you that.
Do not roll over credit :
The only way of avoiding late payments, huge bills and debt are by paying the most part of the outstanding and not just the minimum payments. In the ideal world, you should not carry over any payment on your credit card as that costs you a lot. If for some reason you must carry over some due make sure it the minimum. If you have already accumulated a lot of debt on your credit cards you might want to consider taking a personal loan and paying off all your cards. That will help you reduce the interest you pay on the outstanding debt and pay of the debt faster.
Do not over do things(Credit):
Make sure you don’t over purchase so that it becomes difficult for you can repay the same within the interest-free time period. This is easy to do with credit cards as when you do not count cash sometimes the amount spent during the month might come to you as a surprise. The best way to avoid this is to have budgets and track them real time. That can be done using mymoneykarma as it provides you with alerts when you are near or over your budgets.
Start saving well before you have difficult times
Always be prepared for difficult times, hence make sure you keep a check on your unnecessary expenses, have enough balances on your cards to help you during the crisis and should have a minimum of six months of expenses as the emergency fund. The trick to this is discipline. If you invest even small amounts systematically every month you will develop a corpus to help you tide any emergency.
The trick to managing your credit well is discipline and tracking. If you focus on both these you will end up managing your credit well and having a great financial health.