All of us have used credit cards in some point of time, in life. Paying off credit card debt can be difficult which arises when we fail to pay the payments on time. Overuse of credit cards is the primary reason why people get into debt. Everyday purchases through credit cards can lead to a difficult debt situation. To avoid large bills at the end of the month, it is important to limit the use of credit cards. Being disciplines about credit card use can help you manage your finances in an easier manner. Your maximum balance should be lower than the balance which the card issuer allows.

Maintain strong credit

Credit utilization has an important impact on credit score. The higher the credit utilization ratio more negative is the impact on the credit score. Managing credit cards is slightly complicated as you start to incur multiple payments. Credit score can be affected due to variance in balance, number of cards, and whether existing cards are closed. It is important to note the following points if credit cards are used:

• If payments are made on the time it has a positive impact on credit score.
• Lower is the ratio of the card balance to the total balance higher is the credit score. Utilization ratio can be improved by increasing the maximum balance.
• Older cards prove your financial stability.

Credit card debt relief

If you are in a situation where credit card debt needs to managed, you can adopt a method which suits your requirements the best. Here, we discuss some methods to tackle credit card debt:

• You can approach a debt settlement company which advises you to transfer a specific amount of money in an escrow amount and refrain from making monthly payments. You can use the savings to pay off the settlement that will be reached.
• You can speak to your credit card company who will be ready to negotiate on the amount that is due.
• Although bankruptcy can lower credit score in some cases, it can prove beneficial in managing credit card debt.

Be wise and responsible

Using credit cards wisely is very important. Whenever you are, using a credit card you need to repay the amount that you are borrowing. Owning a credit card has many responsibilities attached with it. When you apply for a credit card it is essential that you weigh the pros and cons. Your monthly expenditure should be within your means. If you use your credit cards responsibly it can help you to attain a strong credit history. You can avoid financial problems by keeping track of your spending.

Vital facts

In order to take a wise approach while managing credit cards the following points should be kept in mind.

• You should read the fine print which often includes changes in fee structure and charges. As they are worded in tiny script, there are chances that we may miss them.
• It is important to understand the balance transfers which take place. Using credit cards judiciously can have a positive impact on your credit score. You can transfer the balance to a credit card which does not have an outstanding balance. In this manner, you can save the interest that needs to be paid.
• Maintaining two to three credit cards can help you to build a good credit score. But lenders are wary of individuals who hold multiple cards.

An intelligent approach to use credit cards is to avail the interest free dates. You can use the interest free period to the largest advantage. If you display responsible paying methods and are a loyal customer you can negotiate with a credit card companies for better rates. While maintaining credit cards it is important that you do not give into the urge of overspending.

Get Interest Free Credit Cards

The use of credit cards is seen as vital in today’s society, especially since both individuals and companies are moving towards a more digital landscape. Because of this, the number of people wanting to apply and get one is increasing. Of course, this doesn’t mean that they would jump for any chance to have one. Future cardholders are smarter than that; they really examine which card will best suit their needs.

They take their time researching for the right card with some opting to get an EastWest Platinum Mastercard, knowing that it has the features they need in their lifestyle. But not everyone is as knowledgeable on this subject. If you are one of these people, then don’t fret. This article aims to help you understand which card can work for you best.

If this is your first time owning a credit card, then perhaps the most ideal way to go about it is by choosing simpler features, such as an interest-free credit card. Let’s explore some of them below.

EastWest Platinum Mastercard

The EastWest Platinum Mastercard provides cardholders a 0% interest and installment plan when you shop at their partner establishments. It also has a low interest balance transfer that is payable in 6-24 months.

Other perks you can look forward to in this card are free comprehensive travel insurance, free virtual card, and free Lifetime Membership. You can also apply for a cash advance of up to 70% from your credit card limit.

RCBC Bankard Visa Infinite Card

With the RCBC Bankard Visa Infinite Card, you will always have the option to cut your purchases into 3 months with a 0% interest rate. This rate is also applicable when you use your card to pay for tuition (and miscellaneous) fees, online shopping on local and foreign shops, and hotel bookings.

Maybank Mastercard Standard

The Maybank Mastercard Standard has a 0% interest rate when you shop at participating stores. The cost of the items you’ve bought can then be paid in 3-24 months. This installment plan can also be optimized to pay for your retail transactions and outstanding balances. Furthermore, it also offers cardholders a free annual fee in your first year. Not too shabby for your very first credit card, right?

BPI Edge Mastercard

The BPI Edge Mastercard cardholders can take advantage of its 0% interest installment exclusives. You could also get a chance to earn points (1 point = P50) when you make a purchase using this card. It also has a contactless technology, which is very apt with the times. Lastly, your annual fee will also be waived on your first year.

EastWest Bank Visa/Mastercard Classic

The EastWest Bank Visa/Mastercard Classic has a 0% interest rate you can use on your installments. You will also get to earn 1 point every time you make a P100 purchase with your card. The points you collected can then be used as airmiles for your future travel plans. Plus, you get a free travel insurance that goes up to P20m.

Takeaway:

If this is your first time applying for a credit card, be sure to keep the cards listed above in mind when deciding which one can best fit your lifestyle. They don’t only have comprehensive perks and reward systems, but they also offer interest-free plans for you to take advantage of.