In this post we’ll consider tips that can help you make the most out of your existing line of credit.
Charge your monthly expenses on your credit card. Identify the expenses, bills and purchases you regularly spend cash on. Then, try charging all of them to your card account, especially if your line of credit comes with a high spending limit or cap.
Just make sure that you can really afford to pay back the transactions you wish to charge on your credit card. Otherwise, you might incur a huge credit card debt that you may eventually find very hard to settle.
Keep up with your monthly bills, especially when you’re handling a secured line of credit. Keep in mind that your security deposit can eventually be turned into a personal savings fund once you qualify for an unsecured credit card. Hence, to maintain a huge deposit as well as a high credit limit on your student credit card, you should resolve to pay your monthly bills in full and on-time, each month.
Stick to responsible credit habits. Did you know that your spending habits and payment activities can have a huge impact on your credit history? In fact, your card issuer is closely monitoring your transactions so that it can submit timely reports of your activities to the three major credit bureaus. The credit bureaus in turn come up with a list of all your credit and payment activities and then run their custom software to determine your credit score – a three digit number that indicates how great of a credit risk you are. Such number will eventually be used by your target lenders and card issuers when evaluating your application for a line of credit. If they see that your score is high then, chances are your request for funds or for a card account will be approved. On the other hand, if they see that your score is low then, they may turn down your application for a credit program.
This means that if you wish to protect your financial prospects then, it is very important that you stick to responsible credit habits. Such habits do not just involve keeping up with your monthly credit card bills. They also entail spending within your credit limit, using the additional facilities of your credit card program, such as the balance transfer and cash advance features, sparingly, and complying with the terms and conditions of your credit program.
Pay close attention to your credit card charges. Always remember that you can only qualify for limited liability privileges if you can report cases of identity theft and credit fraud to your card issuer, within two to three working days. Hence, you should make it a habit to review the transactions listed on your monthly billing statements. That way, you can easily detect if an unauthorized party has gained illegal access to your credit information and is using your credit card details for their personal gain.
Keep these four pointers in mind and we guarantee that you can optimize the benefits you’ll receive from your student credit card.