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Tips For Credit Card Management – Credit cards are often handy thanks to borrowing if you employ them within the right way – but catch on wrong, and you’ll find that your debts spiral out of control if you’re not paying off your balance altogether or before the top of any promotional or 0% interest periods. The way you employ credit can impact your financial life and even urge other loans later. The key to having credit work for you is accountable administration.

Here are some tips for managing credit responsibly:

1. Keeping your PIN secure

2. Checking your bill

3. Have an idea 

4. decide to pay off fully monthly 

5. Avoiding the late payment trap

6. Avoiding the minimum payment trap

7. Don’t close old accounts:

8. Have differing types of charge account 

9. Avoiding recurring payments on your MasterCard 

10. Protecting your payments

11. Have differing types of credit accounts 

12. Avoid individual loans

13. Monitor your bank accounts: 

14. Check your credit report frequently and fix errors: 

15. Don’t use cash withdrawal

16. Stay under 30% of your entire credit limit.

17. Do’s and Don’ts to avoid stress

1. Keeping your PIN secure

Don’t store your PIN together with your card or provides it to anyone else. If you do, and someone takes the cardboard and uses it, the bank won’t pay you back what’s stolen – they might in most cases if it wasn’t your fault.

Change your PIN to something you’ll remember. You’ll do that at most cash machines. Pick something you’ll remember, but not something like your date of birth that others could guess.

2. Checking your bill

Ensure everything on your MasterCard statement is for belongings you bought and query anything you don’t recognize. Keeping your MasterCard receipts means you’ll match things up, too.

If you get your statement online, it is often a simple idea to see it on a specific day – say every week before the payment’s due – so you get within the habit of creating sure everything is so as which you pay it on time.

3. Have an idea 

You should have an idea for your money. You’ll even have an idea for your credit cards. Budgeting your money can help you pay your loans down faster, avoid carrying a MasterCard balance, and keep you out of debt.

4. Decide to pay off fully monthly

If you don’t totally clear your balance, you’ll typically be charged interest on everything on your card – not just the bit you haven’t repaid.

For example, if you ran up a MasterCard bill of $100 during the month and paid off $99 at the top, you’ll be charged interest on the entire $100.

This depends on your card company – check the terms and conditions carefully.

Debts can spiral out of control. Because you pay interest once you don’t clear your card monthly, debts can hop on and take an extended time to pay off.

Interest charges and, therefore, the way they’re calculated to vary considerably. Confirm you understand what happens on your card.

5. Avoiding the late payment trap

If you don’t pay your bill on time, there might be some severe consequences.

Fees. You’ll be charged a late payment fee, which might be the maximum amount as $12, plus interest on the entire amount you owe.

Increased interest rates. If you’re a repeat offender, your card provider might increase your speed, reduce your credit limit, or cancel your card.

Problems are getting other credit. Paying late can damage your credit rating, making it harder to urge additional credit, mortgages, additional cards, and even phone contracts.

However, there are ways to avoid paying late:

Pay by Direct Debit. The most straightforward thanks to avoiding the late payment trap are to possess the cash leave of your checking account automatically. Ideally, found out an immediate Debit to pay off the full amount monthly.

Pay with time to spare. Although you’ll pay your mastercard bill by phone or online from your bank an equivalent day, it can take a couple of days to process your payment. So please don’t leave it to the eleventh hour.

6. Avoiding the minimum payment trap

The minimum amount you would like to repay on your card monthly is usually relatively small, but paying just this amount will cost you tons within the end of the day.

You could be making repayments for years and find yourself paying more in interest than the first debt.

Let’s take an example of an obligation of $1,000 on a mastercard with a 16.9% APR.

The minimum repayment for this card is 2% of the balance, or $5 – whichever is more significant.

The first payment will be $20, but this figure will fall as you repay the credit.

The table shows what proportion you’ll save if you repay an equivalent amount monthly on a $1,000 balance.

Monthly repayment

The time you take to repay

Interest you pay

The total you’ll pay back

Minimum (2% of balance)

22 years, 11 months




6 years, 10 months




2 years, 8 months




11 months




5 months




3 months



Remember, if you don’t pay off the entire bill, you’re likely to be charged interest on everything on the cardboard, including new belongings you bought that month.

So if you retain spending thereon card, you’ll find yourself paying even more.

1. Don’t close old accounts:

 Sometimes, it’s tempting to shut an older charge account. However, the length of your credit history matters. Extended credit history can help your credit score and assist you to appear skilled. A part of good credit management is ensuring that your score is improved upon.

2. Have differing types of credit accounts

One of the factors considered by lenders when it involves your credit is that the differing types of accounts you’ve got had within the past. A mixture of revolving accounts and installment accounts is preferred. Installment accounts are those, like mortgages and car loans, show you’ll make a hard and fast payment over time (and roll in the hay on time). Like credit cards, revolving accounts show that you can handle paying down your debt periodically, without going over your limit.

3. Avoiding recurring payments on your mastercard 

A recurring payment sometimes referred to as ‘continuous payment authority’ or CPA, lets a corporation put the fees onto your mastercard bill automatically.

But it’s not as safe as an immediate Debit from a checking account.

To cancel a recurring payment, contact your card provider and tell them that you withdraw your permission for the corporate to require fees.

If payments are taken, the cardboard provider must refund this money to you alongside any related charges.

But you’ve got to allow them to know no later than the top of the previous working day.

Recurring payments are best avoided due to the danger that you won’t realize what proportion is beginning of your mastercard account, and you would possibly re-evaluate your credit limit accidentally, resulting in charges.

4. Protecting your payments

If you’re worried that something might happen to prevent you from making payments on your MasterCard debit (perhaps if you lose your job), there’s insurance you’ll buy.

But think very carefully before going for it, as:

• It is often expensive.

• You might already be covered by another policy.

5. Have differing types of credit accounts 

One of the factors considered by lenders when it involves your credit is that the differing types of accounts you’ve got had within the past. A mixture of revolving accounts and installment accounts is preferred. Installment accounts are those, like mortgages and car loans, show you’ll make a hard and fast payment over time (and roll in the hay on time). Like credit cards, revolving accounts show that you can handle paying down your debt periodically, without going over your limit.

6. Avoid individual loans

 While some credit accounts are desirable, individual loans appear suspicious and hostile when viewed by lenders. These loans include payday loans and car title loans. When possible, avoid these sorts of loans.

7. Monitor your bank accounts

Monitor your bank accounts and mastercard accounts. Reconcile your statements regularly to form sure your records match. You’ll also check your stores online to catch fraudulent charges sooner.

8. Check your credit report regularly and fix mistakes

Managing your credit effectively requires that you continue with what’s happening in your credit file. You’re entitled to a free copy of your credit report once you write in under certain conditions. Confirm that there are not any fraudulent accounts, which errors are fixed. Inaccuracies can cause lower credit.

9. Don’t use cash withdrawals

Unlike debit cards, you ought to not use your mastercard to withdraw cash free of charge. If you withdraw money from an ATM together with your mastercard , you’ll need to pay fees and interest, which is typically a better rate than you’d typically be charged.

There is no interest-free period on withdrawals like there’s with purchases so that it won’t be a case of interest being charged at the top of the month.

The best thanks to managing your mastercard are to remain on top of payments and purchases. By not being aware or not paying off the right amount on time, your credit score could also be affected, and it’ll cause you financial difficulties within the future.

10. Stay under 30% of your total credit limit.

One way to keep your credit score healthy is to keep your credit utilization ratio under 30%. This credit utilization ratio is the percentage of total available credit that you’re using. For instance, if your limit is $1,000, you should keep your balance under $300. But the ratio applies to the sum of all of your cards – so if one mastercard features a $3,000 limit with a $3,000 balance and a second card features a limit of $7,000 with no credit, you’re right at the 30% mark ($3,000 of an available $10,000) which is where you would like to be.

Follow some Do’s and Don’t to avoid stress. 


DO go searching. The MasterCard industry is hugely competitive, so compare interest rates, credit limits, grace periods, annual fees, terms, and conditions.

DO use an equivalent name once you apply for credit. Don’t skip middle initials or “Jr.”

DO read the fine print on the application. The appliance may be a contract, so read it thoroughly before signing. Await terms like “introductory rate” and when that rate of interest expires.

DO ask questions. If you don’t understand something, ask.

DO set a budget and stick with it. Developing an account will assist you in keeping your finances so as.

DO be cautious of anyone who rights they will “fix” your credit. The sole thing which will fix a credit report is a time and positive payment history.

DO open your bill and pay it on time monthly. This supports you evade late fees and keeps your credit antiquity — and credit score — good. It also supports defend you from fraud and illegal charges.

DO pay a minimum of the minimum due.

Paying above the minimum due may be a far better idea, and making an idea to scale back the extent of debt is best still.

DO contact your mastercard issuer if you’ve got trouble making payments. The issuer may go with you to make a payment plan you’ll more easily manage.

DO take care together with your mastercard. Keep it secure. Always have your card issuer’s telephone number available just in case your card is lost or taken.

DO view credit as an asset in your upcoming. By using credit astutely, you’ll shape an honest credit history. This enables you to rent an apartment, get a job, purchase a car, and buy a home.

DO order a replica of your credit report annually. Your credit report is like a tutorial report — it evaluates your performance as a credit customer. It must be accurate, so you’ll apply for other loans. You’ll request and acquire a free credit report once every 12 months from each of the three nationwide credit line reporting companies by the Fair and Accurate Credit Transactions Act (FACT Act). To urge a free copy of your credit report, visit


DON’T feel pressure to urge a mastercard if you don’t want one. A mastercard might not be right for you. Don’t be afraid to mention “no” to salespeople. It’s okay to walk off.

DON’T open many credit accounts during a short period of your time. It’ll hurt your credit score and should make credit costlier.

DON’T salary your bills late. Late expenditures can hurt your credit score, and a late fee is going to be charged.

DON’T spend quite you’ll afford. A mastercard isn’t magic money; it’s a loan with an obligation to repay. Realize the difference between needs and needs. Does one need that computer game, phone accessory, or pizza? If you charge these things and only pay the minimum, you’ll be paying for those substances months from now.

DON’T grasp your credit limit or “max out” your cards.

DON’T smear for more credit cards if you have already got balances on others.

If you pay only the minimum balance, pay late, or use cash-advances to pay daily living expenses, you would possibly be within the credit zone.

DON’T give out your mastercard number unless you’ve initiated the transaction. Be aware of identity thieves and scam artists.

In summary

Effective mastercard management and monitoring of your credit rating mean you’ll find it easier to use for loans and other credit arrangements in the future. It also causes you to less likely to fall under mastercard related debt. You’ll maintain a healthy credit file by regularly checking your credit score and outgoing bills to ensure all dealings are honest and within your economical. Pay off your unresolved balance and your minimum payment costs monthly to avoid additional interest and pay on time to avoid late fees. Keeping within your credit limit puts you in better standup together with your bank or credit provider. Finally, you ought to take care not to use your mastercard for withdrawing cash.

Suppose you select not to follow the following pointers and end up burdened by mastercard debt. In that case, we will still assist you to repay what you’ll afford by applying for a private Voluntary Arrangement (IVA), during which your debts are all consolidated into one monthly payment to your creditors, managed by a licensed insolvency practitioner.

Tags: Tips for Credit Card Management, Credit Card Management Tips, Credit Card Uses

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