Top Do's and Don'ts for Credit Card Payments

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When it comes to credit card payments, you don't want to do the wrong thing. Keep your credit safe and your future secure with these do's and don'ts.

Keyword(s): credit card payments

A credit card can be your best friend and your worst enemy. 

Unfortunately, those who struggle with making timely credit card payments tend to view credit cards solely as the enemy. In fact, 70 percent of millennials prefer debit cards over credit cards.

However, if used with restraint and if you keep up with your credit card payments, this little piece of plastic can do you a lot of favors.

It can help you build a good credit score, which you'll definitely need if you ever want to purchase a home or car. And, many credit cards offer cash back deals and frequent flyer miles that really add up to some serious savings. 

But before you go on a swiping spree, it's important to know some key things about credit card payments. 

Read this article to find out the top do's and don'ts!

Do: Choose the Right Card

First things first, it's important that you choose the right card to suit your needs. 

This usually depends on what your purchases tend to be. For example, if you're a big traveler, you'll want to search for a card that offers miles and that doesn't have foreign transaction fees. 

Don't: Miss a Payment

One, little-missed payment may not seem like a big deal, but it can quickly lead to trouble. 

A late payment can lead to a fee of around $35 as well as a hit to your credit score. 

Best way to avoid missed credit card payments? Set up a payment due date that you'll remember. Or, opt for an automatic transfer to pay off the minimum balance from your checking every month. 

Also, if you do miss one, contact your bank usually they're pretty forgiving with the first screw up and will waive your fee.

Don't: Max Out Your Balance

If your credit card balance is $8000, don't view that as an invitation to get as close to that balance as possible. 

Instead, aim to never spend any more than 30 percent of the available balance. 

Even if you pay your credit card off in full, banks aren't huge fans of borrowers who max out their cards every single month. 

Do: Pay With Your Credit Card, Not Your Debit

Getting your identity stolen is a huge pain in the rear. 

But it's a lot less of a pain if you've just been spending with your credit card as opposed to your debit. 

Since debit cards are dealing with actual cash, it's a much more difficult and lengthy process to refund these. 

So, swipe with your credit, not your debit, as much as possible. 

Don't: Scoff at  Annual Fees 

Wait, why would I pay money just to spend money?

While it may seem like you're getting ripped off, there's actually some credit cards out there that are well worth the annual fee (usually $75- $100).

For example, the Chase Sapphire Preferred Card charges a $95 annual fee. Seems steep, but this card comes with zero foreign transaction fees, and for every dollar spent, you earn a point- double for those made while traveling or dining. Plus, the fee is waived for the first year. 

Credit Card Payments Do's and Don'ts Wrap Up

Still working on getting your credit card payment game down pat? Don't worry, so are most Americans.

In fact, the average American has $4,717 in credit card debt. 

Got any questions about credit card payments? Drop a comment below or contact us today. 

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