How to use credit card and benefits of it

             How to use credit card and benefits of credit card

A new  business start-ups are using credit card financing to get their businesses off the ground. The owners of start-up businesses don’t yet have business credit. They only have their own personal credit.

When they use personal credit cards for financing their startup businesses, then they are personally liable for any debt they incur. Suppose, you an owner of a promising start-up business, run up a lot of debt on your personal credit card trying to get your business off the ground and it fails? That time you have incurred massive amounts of debt with nothing to show for it.

Uses of credit card and how to manage it :

when you are using a credit card you should take care of that. If you are not careful so you may get more loss in your transaction. The most important way, you can manage your credit card wisely to pay your bill on time.

The best way to pay your bill on time :

If you want to avoid interest, late fees, and poor credit scores, then you should always pay your bill on time the best ways that people end up in credit card debt isn’t only by charging excessive amounts to their cards. This way is missing a payment is another way that people get into trouble with credit cards. Most of credit card companies will allow you to schedule your payments and reminder to pay your bill.

Tips to get pay bill on time

– Connect your Credit card to salary account (Automatically reduce the credit amount)

– Control the excess amount uses (Avoid to circulate credit card in friends)

– Always pay a bill before time.

Understanding of billing cycle :

Every month your credit company will give you an issue statement which is related to two dates closing date and payment date. The closing date is the last day you can make a charge for a single statement. the payment date tells you when payment for a particular statement is due . Keep in mind all credit are different and each one has is own billing cycle payment date and grace period.

Pay your bill in full way :

The full bill paying is extremely important for using a credit card wisely because it allows you to both avoid interest and build a high credit score. Companies of credit cards  calculate interest using your average daily balance. Check how much interest is charged per day . The daily balance calculation is one of the most misunderstood concepts when it comes to credit cards. Most of people believe that credit card interest is calculated based only on the leftover balance after they make a payment. This is  not the case and can lead to hundreds of dollars in extra interest payments.

Be able to prove your financial responsibility :

When you apply for the credit card first time the bank of business issuing you the card wants to know that you’ll be able to pay back any money you spend. when you are doing this method they will check your credit history, which is made

available to them by credit report agencies.

Build your credit history :

In general, your strategy with your new credit card should be to make small purchases fairly regularly and pay them off immediately. It shows the institution that gave you the card that you can responsibly pay back your credit balances,

which in turn boosts your credit history. Having a strong credit history is important.

Avoid getting multiple cards at once :

It’s spending too much money on credit cards can hurt your reputation with lenders, so too can opening lots of credit card accounts at the same time. And makes it look to lenders like you suddenly need lots of money that you can’t get from

your paycheck, which can make loaning to you seem like a risky idea. In addition, the total number of credit cards you have can affect your credit scores. These many adults responsibly maintain more than one credit card, it’s generally

considered unwise to have more than about five.

How to use credit card and benefits of it

Careful for your credit information  :

Credit cards aren’t like debit cards. An important number of cards are issued with PIN number technology, but you don’t need the PIN number to use them, often only a signature especially at independent merchants. vendors will ask you to

see an id when you use a credit card, but many do not. It reason, if your credit card gets into the wrong hands, someone else may be able to run up purchases and you’ll be stuck with the bill. Then you’ll want to be very careful to keep track

of your credit cards as well as any correspondence that contains information relevant to them, like your credit card password to your online credit card account.

Credit score :

Three major credit reporting agencies in the United States which report, update and store consumers’ credit histories.

Then there can be differences in the information collected by the three credit bureaus, there are five main factors evaluated when calculating a credit score:

• Total amount owed
• Length of credit history
• Types of credit
• New credit
• Payment history

There are different types of credit used counts for 10% of a credit score and shows if a person has a mix of installment credit, such as car loans or mortgage loans, and revolving credit, such as credit cards.In this  new credit also counts for

10%, and it factors in how many new accounts a person has, how many  accounts then applied for recently, which result in credit inquiries, and when the most recent account was opened.

The ways to improve your credit score :

When information is updated on a borrower’s credit report, his or her credit score changes and can rise or fall based on the new information.

Here are some important way you can improve your credit score :

If you want to get more improvement in your credit score so you have to pay your bill on time . The duration of pay bill is six months payments is required to see a noticeable difference in your score.

“A few credit cards companies/ bank gives you a chance to pay payments within 40 to 60 days without any interest .

Improve your credit line: If you have credit card accounts, call and inquire about a credit increase. If you are getting your account  in good standing position , you should be granted an increase in your credit limit.