Tag Archives: personal finance

Credit Cards

8 best retailer credit cards to get in 2023

Retailers in partnership with banks and credit card companies launch co-branded retailer credit cards. This partnership is specific to a retailer. These cards offer extra discounts at the retailer or at a group of affiliated retailers.  They may also offer extra discounts on certain items on using the credit card. Some retailers may offer free shipping or extra return periods on using these cards.

These credit cards offer the same features as regular credit cards.  A card member needs to pay the dues as any other card. If you carry any balance beyond the last date there is a delayed fee and interest.

Why use co-branded retailer credit cards

Retailer co-branded credit cards may be attractive to loyal consumers. If a shopper frequents a particular retailer they earn rewards on their purchases. It’s important to review the terms and conditions of these cards.  They may have higher interest rates or fees compared to other credit cards.

It’s also a good idea to compare the rewards and benefits of different credit cards. Co-branded retailer credit cards might not offer the best deal from the issuer bank. Regular rewards credit cards may offer better deals than co-branded cards.

Best co-branded retailer credit cards

Here is our list of some of the best co-branded retailer credit cards:

#1 Card Name: Target Red Credit Card

retailer credit cards
Target Red Cards

Fees: $0 joining or annual fees

APR: 28.90% variable APR

Rewards: 5% off on Target stores and also on Target.com on eligible purchases. Customers earn 2% on dining out and gas purchases and 1% rewards elsewhere

Our Rating: 2 / 5

Pros and Cons of this Card: Firstly, Target Red Card offers free 2 days shipping on thousands of items on Target.com. Next, this card has exclusive special items and offers. Next, card members get extra 30 days of return and exchange time on any purchases in Target. On the other hand, this card has a high APR. Discounts are better if a card member shops at Target, elsewhere the card offers only 1% rewards. Further, the members can redeem the rewards or cashback for only Target Gift Cards.

#2 Card Name: Costco Anywhere Visa Card by Citi

retailer credit cards
Costco Visa Card

Fees: This card is offered free with a $0 annual fee with a valid Costco membership.

APR: 19.49% -29.49%  variable APR on purchases and cash advances.

Rewards: Card members earn 4% rewards on the gas and EV charging up to $7,000 per year. In addition, they can earn 3% rewards on restaurants and travel. Further, 2% rewards on eligible purchases in Costco stores and Costco.com and 1% rewards on all other purchases.

Our Rating: 3 / 5

Pros and Cons of this Card: This credit card costs $0 in fees with an existing paying Costco membership. Further, card members do not need a separate membership to Costco. The credit card works as a Costco membership card. Costco offers members exclusive discounts for credit card holders. Card members can add more family members to these cards, and they can earn cashback on their purchases as well. Finally, Card members can redeem cashback against an annual certificate for redeeming merchandise at US Costco stores

#3 Card Name: Amazon Prime Rewards Visa Credit Card

retailers credit card
Amazon Prime Rewards Visa Card

Fees: $0 with a valid Amazon Prime membership

APR: 17.99% – 25.99% variable APR

Rewards: Card members earn a $150 welcome Amazon Gift Card upon approval of a new credit card. Further, members earn 5% back in rewards on Amazon.com and Whole Foods Market. They also earn 2% rewards in restaurants and gas stations and 1% rewards on the rest of their purchases.

Our Rating: 3/5

Pros and Cons of this Card: Firstly, this card requires the card members to have a valid Amazon Prime membership. This is good for existing card members. The current cost of the Prime membership is $39 per month. Card members earn bonus rewards of 10% cashback on selected merchandise. This card also provides travel emergency insurance and lost baggage insurance.

#4 Card Name: Capital One Walmart Rewards Card

CapitalOne Walmart Card

Fees: This card is offered with Zero fees to the card members.

APR: 17.99% – 27.74% variable APR

Rewards: Card members can earn 5% cash back on Walmart.com. The card also offers 2% cash back in Walmart stores, fuel stations, restaurants, and travel spends. Further, it offers 1% cash back on other purchases

Our Rating: 3 / 5

Pros and Cons of this Card: Card members earn 5% cashback while paying in Walmart stores using Walmart Pay. They can also redeem the cashback for the statement credit. This cashback can be set off for any sale in the Walmart store. Card members can redeem it for gift cards or travel purchases.

#5 Card Name: Macy American Express Card

retailer credit cards
Macy American Express Card

Fees: Card members get this card for $0 in annual fees. There is a cash advance fee of 4% and a foreign transaction fee of 3% on this card.

APR: 30.99% 

Rewards: Macy’s offers a 20% discount totaling $100 for 2 days on the card approval.

Our Rating: 3 / 5

Pros and Cons of this Card: Macy’s offers three credit cards for their loyal customers. For, annual shopping up to $500 they offer a silver card. Card members with annual spending from $500 to $1,199 qualify for a  Gold card. Finally, for members with annual spending above $1200 qualifies for a platinum card.

Card members can earn 3 points per $1 spent at restaurants including delivery. For every $1 spent at gas stations and supermarkets, card members earn 2 points. This credit card also offers exclusive shopping days with bonus rewards for shoppers at Macy’s. This credit card offers birthday surprises for its card members. Further card members get free shipping for orders of more than $25. For gold and platinum credit cards there is no minimum order amount to qualify for free shipping. Finally, this card has one of the highest APRs at 30.99%.

#6 Card Name: myWalgreens Master Credit Card

retailer credit cards
myWalgreens Card

Fees: $0 in annual fees. A cash advance fee of 4% and a foreign transaction fee of 3%.

APR: 20.99% – 29.99% variable APR

Rewards: A one-time $25 cash reward on making any purchase within 45 days of opening a new credit card account. Walgreens also offers a 10% reward on self-branded products. There are also 5% cashback rewards on purchasing other brands.

Our Rating: 4 / 5

Pros and Cons of this Card: Firstly, Walgreens Mastercard offers extra rewards at Walgreens stores, Duane Reade, and Walgreens.com. This card though co-branded with Walgreens also offers 3% rewards on grocery and health & wellness products bought outside Walgreens. For the rest of the purchase, this card offers 1% rewards.

#7 Card Name: Home Depot Consumer Credit Card

Home Depot Card

Fees: This card has $0 in annual fees. Card members have to pay a cash advance fee of 4% and a foreign transaction fee of 3%.

APR: 17.99% – 26.99% variable APR

Rewards: Card members earn a one-time reward of up to $100 cash reward on making purchases above $1,000. 

Our Rating: 3 / 5

Pros and Cons of this Card: Credit card members get one year to return any product they get from Home Depot. Card members get 6 months of 0% interest financing on purchases of more than $299 if paid in full in time. On special promotions, this financing will increase to 2 years

#8 Card Name: My BestBuy Visa Card

retailer credit cards
Citi BesyBuy

Fees: Annual fee for this card vary and could be $0 – $59 in the annual fee. Minimum $5 or 5% of the balance transfer fee.

APR: 27.99% – 29.99% variable APR

Rewards: Card members earn 5% rewards on shopping at bestbuy.com or at the BestBuy stores. This card also offers 18 months of free financing on purchases above $499.

Our Rating: 3 / 5

Pros and Cons of this Card: Bestbuy visa card offers financing options on purchases in the store or bestbuy.com. Card members earn 3% cash back in rewards for buying gas. They also earn 2% back in rewards on grocery, dining, and takeout. There is 1% cash back in rewards on other purchases. Finally, Bestbuy runs promotional offers on high-priced items including free financing options

#9 Card Name: Kroger Rewards World Elite Mastercard

Kroger elite card

Fees: $0 in the annual fee and foreign transaction fee. The balance transfer fee of 4% of the balance transfer amount

APR: 18.24% – 29.24% variable APR

Rewards: 5% rewards on shopping at bestbuy.com or the BestBuy stores. 18 months of financing on purchases above $499.

Our Rating: 2 / 5

Pros and Cons of this Card: Kroger rewards card offers 5% rewards on mobile wallet purchases for the first $3,000 spent. Card members earn 1% rewards for spending above $3,000. Members earn 2% rewards in the Kroger stores. For the rest of their purchase, they earn 1% rewards. Kroger Mastercard also offers an additional discount on fuel purchases at Kroger Pumps. The terms and conditions of the card are available on the Kroger website.

Some advantages of using Co-branded retailer credit cards

  1. Firstly, retailer credit cards offer better rewards or discounts on shopping at the c-branded retailer. These rewards are available to cardholders for purchases made at the retailer. These rewards may include points or cash back on every dollar spent. Certain items or inventory may carry bonus discounts or points. Usually, high-priced items may carry extra discounts if purchased using co-branded credit cards.
  2. For loyal shoppers getting a co-branded credit card offers extra discounts. It makes sense to apply for such credit cards if a customer frequents a particular retailer.
  3. Next, retailer credit cards may offer special promotions or sales to cardholders. This may be through early sales days, exclusive discounts, or early access to new products.
  4. Further, it is often easier to qualify for a retail credit card compared to a traditional credit card. People with fair credit scores may also qualify for the same. The approval process is usually less stringent. Retailer credit cards have a higher APR as compared to normal credit cards.
  5. Finally, retailer credit cards may offer extra customer service benefits. These could include extended return periods for any items bought on a credit card. Concierge services or fitting services are free of cost for credit card members.

Disadvantages of using retailer credit cards

Evidently, there are several potential disadvantages to using a co-branded retailer credit card. These may include:

  1. First of all, retailer credit cards provide the best discounts only at the retailer or affiliated retailers. This may be a little inconvenient if you shop at other stores or online at eCommerce stores.
  2. Next, these credit cards in the hands of frequent shoppers may spiral them into a debt spiral.
  3. These credit cards may charge higher APR compared to other normal credit cards. This can make them more expensive to carry a balance on.
  4. Retailer credit cards may charge annual fees or membership fees. They may also levy other fees such as late payment fees or balance transfer fees. As such, this can add to the cost of using these credit cards.
  5. Co-branded retailer credit cards offer limited rewards and benefits from the bank. Rewards credit cards by participating banks may offer better deals and rewards. For example, a retailer credit card may only offer rewards for purchases made at the retailer. A rewards credit card may offer rewards for purchases made anywhere. Similarly, travel credit cards may offer better deals and discounts on travel-related purchases.
  6. Finally, retailer credit cards may not be as effective at helping you build your credit history. They may not report the credit history to the three credit bureaus.
Personal Finance

7 Smart ways to improve credit score in 2023

If you’re looking to improve credit score, using credit cards responsibly can be a smart way to do it. By following a few simple tips and tricks, you can use your credit cards to boost your credit score. We’ll share some ways to improve your credit score using credit cards. By following these tips, you can improve your credit score and increase your chances of getting approved for loans in the future. So let’s dive in and take a closer look at how you can use your credit cards to improve your credit score.

1. Always pay your bills on time

This is the most important factor in determining your credit score. Make sure to pay all your bills on time and every time. Payment history is a key factor in determining your credit score. Paying your credit card bills on time helps improve your credit score. Late payments have a negative impact on your credit score. By paying their bills on time, a user shows that they are financially responsible. This habit help in building and improving their credit score. Additionally, paying your bills on time can help you avoid late fees and other penalties.

2. Keep credit card balances low

Secondly, never utilize the full credit available on your credit card. Utilizing only a part of the limit of credit card balances helps improve credit scores. It shows that a user is able to manage their credit and avoid high levels of debt. When the credit card balances are low, it indicates to lenders that a user is not overleveraged. They are financially responsible and hence have low credit default risk.  

Credit cards are unsecured debts and carry a high risk for lenders. High credit card balances are a red flag to lenders. Risk algorithms flag users who have high balance utilizations. They are risky as they are too dependent on credit card debts.

Having low credit card balances can help improve your credit utilization ratio. This ratio is another key factor in determining your credit score. This ratio measures the amount of credit you are using relative to your credit limit, and a low ratio can help improve your credit score. High balances on your credit cards can hurt your credit score, so try to keep your balances below 30% of your credit limit.

3. Limit the number of credit cards and loan accounts

Each time you apply for a new credit card, it can ding your credit score. Try to limit the number of credit card applications you make.

Having too many credit cards can hurt your credit score in a few different ways. First, having a high number of credit cards can increase your credit utilization. This can be damaging to your credit score because it is a major factor in your credit score. High credit utilization can show to lenders that you’re using too much of your available credit.

Additionally, having too many credit cards can also make it more difficult to manage your payments and keep track of your spending. If you have a lot of credit cards, it can be easy to miss a payment or make a late payment, which can also harm your credit score.

Finally, having too many credit cards can also be a red flag to lenders, who may see it as a sign that you’re not able to manage your finances. This can make it more difficult for you to get approved for new credit or loans, and can even lead to higher interest rates on the credit that you do have.

Be mindful of the number of credit cards you carry. Use credit cards responsibly and maintain a healthy credit score.

4. Check your credit report

Make sure to check your credit report regularly for errors and disputed items. Users can request one free credit report per year from each of the major credit bureaus.

Checking the credit report allows a user to identify any errors or potential fraud. By reviewing the credit report, a user can ensure that the information is accurate and up-to-date. If there are any errors or fraudulent activity, flag it to the credit bureau. A credit bureau may not take any step on a report unless someone tells them of any fraud. Managing the credit report is an individual responsibility. Improve your credit score, to avail favorable credit terms when you apply for a mortgage. Reviewing the credit report can help identify any areas where you need to improve to boost your credit score.

Reviewing credit reports provides you with information on any old credit accounts. It also informs of the Credit utilization ratio and any unpaid credits in your name.

5. Avoid maxing out credit cards

Maxing out your credit cards can have a negative impact on your credit score. It’s best to keep your balances as low as possible. Try and keep your usage of credit cards to 30% of the total limit on your credit cards.

Maxing out one’s credit cards is a sure sign of credit distress. This can impact your credit score because it shows that you may be struggling to manage your finances. It also indicates to lenders that you may be at risk of defaulting on your payments. This can decrease lenders’ confidence in your ability to repay future loans or credit, which can result in a lower credit score.

6. Open new credit card accounts only when you need them

Opening new credit accounts can hurt your credit score, so it’s best to only open new accounts when you really need them. Applying for many credit cards in a short period of time can also hurt your credit score. Each time you apply for a credit card, the issuer will perform a hard inquiry on your credit report, which can lower your credit score. This might revert to default in the long run.

7. Be patient to improve credit score

Improving your credit score takes time, so be patient and continue to manage your credit. Once a credit profile turns negative due to any reason, it takes financial prudence for it to turn positive. Also paying a big chunk of money once won’t improve the credit profile overnight.

Consistency is the key to improving your credit score profile. The risk algorithms by lenders and credit agencies reward small payments.  It will pay off in the long run.

Use your credit card smartly to extend free credit. Do not be a slave to your credit card or fall into a debt trap. The USA has the highest per capita credit card debt. Find our article on ways to manage the debt on your credit card.

Credit Cards

5 Credit card hacks to score best rewards in 2023

Credit card hacks are legal ways to hack the most efficiency out of your credit cards. Pro credit card ninjas can make 3x-4x in benefits. Noobs use credit cards for payments and for easy credit access. Herein we will show you how to be a credit card ninja by learning the game’s tricks.

These are all 100% legit programs or rewards offered by credit card companies. We are not gaming the system or trying to hack any website. Our aim is to maximize the associated benefits of a credit card. 

Finally, many credit card companies bundle direct cash benefits like cashback or reward points. Some cards may also bundle non-monetary benefits like free insurance, lounge access, etc.

So without further adieu let’s get into some of the hacks:

1. Credit Card hack to use only one specific Credit Card

Foremost, using one card helps members accumulate cashback and maximize rewards. Multi-cards distribute the spending and reduce the benefits. Members can get a better reward ratio by going for a reward or cashback card. These cards can help them get as much as $500 in a year. If they have a good credit score and have a habit of paying bills on time, it’s easy to get such cards.

Always set up automatic payments for your card bills and pay in full. This helps you avoid any late payment penalties. Card companies offer rewards and cashback only if the payments are paid in full and on time. To get the benefits you have to be prudent and pay on time. 

2. Co-branded credit card hacks

These credit cards are some of the best ways to earn great rewards. Look at some of the popular websites or stores you frequent. All the big retailers and eCommerce stores offer co-branded cards with one or the other banks.  Airlines and hotels also offer co-branded credit cards.

These credit cards offer rewards in the form of cashback on shopping from the website or store. They may also access the benefits of early shopping days. Some co-branded cards of eCommerce companies offer free shipping.

Always be very careful when opting for these cards. If you get too many cards, it may trigger an emotional response to more shopping. Be mindful of your shopping habits. Co-branded cards usually do not carry any membership or renewal fees. Some of the popular cards you can go for in this category are: 

  • Amazon Prime Rewards Visa Signature Card which offers 5% cashback on all purchases. This card offers even 10% cash back on some Amazon category buys. Outside Amazon, purchases fetch  1-3% cash back. This is a perfect card if Amazon is your go-to website.
  • Target Red Credit Cards offer 5% cashback on shopping in the store and on the Target website. Members of this credit card also get free 2-day shipping and other hosts of awards. 
  • Costco Anywhere Visa Card from Citi is a good card for Costco members. This card offers 4% cash back on gas and 2% on all purchases from Costco. This card also offers cashback on purchases outside Costco. Costco Anywhere card requires you to have an active Costco membership.
credit card hacks
Amazon Prime Visa Card

Travel Rewards Credit Card hacks

If you travel a lot because of your business or job or personal travel. You should opt for Co-branded travel credit cards from the airlines. These credit cards help you with free flights or enhance benefits. Members get flight miles when they use these cards for their outside spending. These cards usually offer extra cash back on dining, car rentals, hotel stays, etc. Finally, these cards may reimburse the fees for TSA Precheck or Global Entry programs at airports.

Some popular examples of such cards are 

  • Delta Skymile Amex Card
  • Southwest Rapid Rewards Visa Card
  • AAdvantage Credit Cards from Mastercard
  • United Credit Cards from Chase
credit card hacks
Delta Skymiles Amex Card

It makes sense to choose one of the airlines as a preferred one and its co-branded card as the preferred card. Do not go overboard with too many credit cards here.

Card members can also opt for a co-branded credit card from a hotel chain. Select a popular big chain like Marriott or Hilton which would have hotels in many cities as well as internationally. Marriott offers Marriott Bonvoy Credit Cards from Chase and American Express. These cards offer free nights, accelerated points, elevated status, and benefits to the members.

These cards are beneficial for frequent travelers. Everyone loves to travel these days and the trends on Tiktok and Instagram help people select destinations. People can get further advantages by selecting a better travel card.

4. Apply for Multiple Credit Cards

Once you are comfortable with choosing one card and are financially responsible, apply for multiple credit cards. Multiple cards help you split your monthly spending into various categories. Members can use rewards or cashback cards for grocery shopping. Further, they can opt for travel co-branded cards for traveling or dining-related benefits.

Big card gurus go for 10-12 new cards every year. They may even hack the system to get welcome benefits on a credit card. If your spouse has a good credit score, you can opt for a second referral credit card in their name. You will get twice the welcome bonus and referral bonus as well. This is one of the great hacks to multiply the rewards.

One good example of such a card is the Chase Rewards Freedom card. This card offers 50,000 points when you spend at least $4,000 in the first three months of card issuance. Once you have reached the limit, refer your spouse or partner for a new card, and you can repeat the benefits.

Credit card companies keep elaborate data on their customers. So users can’t go on repeat and rinse the above technique several times. But even for one time, this is a good hack for reaping rewards. Do note that applying for certain credit cards may require a hard look at your credit score. This may also affect your credit score briefly.

Also, keep in mind not to get into the debt trap by spending too much on credit cards. Further, your credit history may go for a toss if you are not able to manage your cards.

5. Luxury Cards 

There are high-end luxury cards offered by issuing banks or co-branded by luxury brands. These luxury credit cards offer exquisite rewards and offers. One obvious downside of such cards is that they usually come with hefty joining fees. They may also have annual renewal fees.

There is a delicate balance on these cards as the rewards are mouth-watering. For example, Golf Club Memberships, Free access to platinum lounges, and Premium membership status in hotels and airlines can be yours. But are you okay to shell out hundreds of $$ in annual membership fees? This is a question to ponder. 

Credit score betterment

Credit cards can also help you improve your credit score. If you have a balance available on one of your credit cards, increase the credit limit of the card. This will help the member increase the credit ratio which will improve the credit score. Do remember this activity takes time and it may take months before your credit score moves. 

Finally, the aim of the game is to maximize the rewards and not let the credit debt pile on. Credit card debt has one of the highest interest rates and penalties, so be conscious of using your cards. Don’t overspend to reach a rewarding milestone. The human brain is wired in such a way that we run towards a goal without thinking of consequences. Never fell into the debt trap. In conclusion, this game is about maximizing returns not selling your soul to become the slave of the card company.

Personal Finance

5 Best Practices to use Credit Cards in 2023

Credit cards are definitely one of the wonders of the Financial world. They let you use free money for a period of 30 days and then a further 15-28 days to pay the bill. So a member gets at most 45 days to pay up their bills using their credit cards. In this article, we will take you through some of the best practices to use credit cards.

There are advantages of a credit card but there is a big downside to this free credit period. Credit card companies charge huge fees and interest on late payments and interest. Credit Card companies charge some of the most prohibitive interest rates. For example, some credit cards charge in the range of 2.5% to 4.5% per month of the outstanding amount.

1. Always pay your bill in full and on time

Ensure to pay your credit card bills on time and always in full. This is the surest way to ensure a good credit score and also keep your finances healthy. Paying the least amount due and rolling over credit looks good. The punishing interests and penalties will eat into your hard-earned savings. Think of interest charges on credit cards as negative balances. It eats into your savings and earnings.

If a card member misses payments, they could end up paying penalties of hundreds of dollars. Also, the interest charged can very well run up to thousands of dollars. These are unnecessary payments you can avoid by paying bills on time. Another negative impact of missing timely bill payments is the hit on the credit score of a user. This will further affect the future loans or mortgage requirements of the member.

As a good practice automate the card payment. This will remove the hassle and you will pay in full to the Credit Card Company near the payment due date. This will prevent any accidental oversight. Also, it will prevent any delay in payments and avoid late penalty charges. Credit cards have different billing and payment cycles. It is difficult to remember payment dates if you have many cards.

2. Keep tracking your Monthly Statements

Always keep track of your monthly statements to detect any anomaly in the statement. There might be any fraud activity or extra fees which may go under. Also, be careful of interest rates or charges that the credit card company might be charging you. Setting up notifications on your phone or a credit card app on your phone will help you keep a tab on the spending on the card.

Billing errors though very rare can creep into the card statement. A few minutes spent going through the card statements may help you later with heartburn.

Credit Card companies also offer fraud prevention. The minute a user reports fraud, they can relax as any transaction is the company’s responsibility. So as soon as you reach out to the company, they can help you take care of any fraudulent activity on your card.

3. Stay well below the credit limits of the credit cards

To improve your credit score do not use your credit limit. Try to keep your monthly spending below 30% of your total credit card limits. “Credit Utilization” is the term for this credit card. This reports how much of the available credit is a customer actually using. Lower credit utilization is more financially responsible for a user.

Running through an example, if you have 2 credit cards with a total $20,000 limit on both cards. 30% of the same works out to be $6,000. So keeping your total spend of a month below $6,000 will not affect your credit score. It is always a good idea to be a responsible spender and not go overboard with the limit. An extra payment will help improve the score and bring you back within the limit.

4. Best practices to use credit cards and know your Credit Card

Few card members are aware of the features or the fees on their cards. Users usually buy a credit card from a card sales guy or a recommendation from a friend or family member. Knowing your own credit card can help you detail out the fees, penalties, or charges. Usually, these details are available on the credit card website or their app.

Look out for some of the below charges or fees applicable to your card as the same may impact you as a user.

i. Annual Fees

Firstly, always try and opt for credit cards with no annual fees. The cards which annual levy fees usually offer much more rewards and value. Always, take a stalk if the extra fee is worth the extra benefit the card is offering. Unless you are getting 3 times the rewards from a credit card’s annual fees, there is no point in paying the same. A $1000 annual membership card may offer a golf membership but if you aren’t a golf player the fees are not worth it.

Chase Freedom Unlimited Credit Card

ii. Balance Transfer Fee

Secondly, look for the balance transfer fees. This fee refers to transferring your credit card debt to another provider. Companies charge a fee of 3-5% of the outstanding amount as a one-time fee for a balance transfer. Do check what your credit card is offering you for this service.

iii. Foreign Transaction Fees

Credit Cards may charge exorbitant fees on foreign transactions. Always check the currency display on any eCommerce site so that you are paying in USD. If you are a frequent traveler, choosing a specific card that offers better Foreign Transaction charges makes sense. In spite of additional cost, a credit card with zero foreign transaction fees may come out beneficial for frequent travelers.

iv. Late Payment Charges

Credit cards also levy fees for late payment charges. These Late payment fees can start from $30 and can be high as $250. If we look at some of the popular credit cards like Chase Ultimate Rewards Card, which charges a $40 late payment fee. This is an unnecessary penalty for skipping a payment. The best way is to automate the payment and this takes care of any missed payments.

v. Interest Charges

Lastly, always pay attention to the interest rate charges applicable to your credit cards. Credit cards are notorious for their high-interest charges. Banks collect billions of dollars in profit each year by charging this interest. The Interest is known as the Annual Percentage Rate (APR). If we see the details of the American Express Gold card. The card charges an APR of 20.24% to 27.24% based on the creditworthiness of the card members.

best practices to use credit cards
American Express Gold Credit Card

5. Manage the emotional triggers which make you spend

We all falter sometimes with our credit card payments. Obviously, late payments and interest charges are the facts of life. Be responsible, and keep yourself away from triggers that turn into a spending spree. Fast fashion and easy access have made shoppers fall into the spending spree.

Finally, control your surrounding environment. If you are somebody who gets scared of spending cash. Do the same. Don’t use cards, use cash. You may lose on some rewards but would be happy and financially healthy. Identify your own trigger and own your mistakes.

Some credit card companies increase your credit limit if you pay your bill on time or you are holding the card for some time. These credit limits are usually set up with the consent of the card members. Having too broad or large limits may do more harm to you than helping you in your time of need. You may ultimately, fall into an overdrive of spending or into a debt trap.

The best practices to use credit cards are built over time

In conclusion, remember it takes time to build new habits. But today is a good day to start. Keeping a close watch on your credit statement, paying bills on time, and an emotional check on spending triggers can help you use your credit cards. Enjoy the advantages the 21st-century money is providing without the downside.