Are you guilty of overspending when you have your credit card in hand? If so, you’re not alone. A lot of people find themselves spending more than they planned when they use their credit cards. However, with a little bit of self-control and awareness, you can learn to use your credit card responsibly. Here are four guidelines to help you get started:

Step #1: Always make payments on time
Making your payments on schedule is essential when it comes to managing your credit cards. Late fines, interest rate hikes, credit limit reductions, and even account closure might result from missed payments.

Step #2: Keep an eye on your credit utilization ratio
The ratio of your credit card limits to the balances on your credit reports is known as credit usage. The balance-to-limit ratio or revolving utilization are other names for this.
From a credit scoring perspective, a lower credit utilization ratio is better, meaning lower balances relative to your credit limits. You can calculate your utilization ratio by dividing the balances into all your revolving credit lines by the total credit limit you have available.

Step #3: Review Your Statements & Leverage Technology
Verifying your statements for inaccuracies is a crucial aspect of using a credit card properly. You should carefully review your credit card statement each month to make sure you are familiar with all the transactions on your account.

Step #4: Keep unused accounts open
It’s true—and you’ve certainly read or heard about it before—that canceling a credit card account might affect your credit score. Normally, you ought to keep any unused credit card accounts open.

Credit card debt is a huge problem for many people. But it doesn’t have to be your problem. These four guidelines can help you take control of your credit cards and use them responsibly. Implement these tips today, and you’ll be on the path to better credit health and improved finances. Ready to get started? BOOK A CLARITY CALL with us now! We can help you map out a plan that will work for you and put you back in charge of your money.