A credit card can serve as a means for improving one’s financial well-being, as it promises the cardholder convenience, the opportunity to build their credit, and various benefits like rewards points and cashback. But these benefits also come with the responsibility of properly managing one’s credit. If you aren’t proactive about managing your expenses, you can incur credit card debt, which can accumulate surprisingly fast. This can lead to high-interest charges and potential damage to your credit score, thus affecting your future financial opportunities—for example, your ability to secure a loan.
As a credit card holder, one of your foremost responsibilities is to stay on top of your credit card payments. This is what will help you avoid late fees and hefty interest charges, as well as allow you to keep a good credit score. Effectively managing your payments will also allow you to maintain control over your finances and free you up to take full advantage of the unique rewards on your credit card, like the cashback rates on a Landers Cashback Everywhere Credit Card by Maya.
To help you stay on track with your credit card payments, consider the following tips:
1) Review Your Credit Card’s Posting Date and Due Date
One thing you should learn about in order to stay on top of your credit card payments is the difference between the posting date and the due date. The posting date is when a transaction is officially recorded on your account, while the due date is the last day you can make a payment without incurring late fees. If you can keep track of these dates, you’ll be able to plan your finances better and avoid unnecessary penalties.
For instance, if you make a large purchase right after the closing date of your billing cycle, you’ll have more time before the payment is due. This can give you extra weeks to arrange your funds and ensure you can make the payment on time while steering clear of interest charges and late fees.
Keep in mind that the posting and due dates of each credit card can vary. The onus is on you to review your card’s terms and conditions and to find out more information about these important dates. In the case of your Maya credit card payment posting date, you may view it on the Maya app, along with other details about your credit card transactions. At your convenience, you can also set up your own cutoff date for your Landers Cashback Everywhere Credit Card and review all your statements of account in the app.
2) Reduce Your Credit Limit
If you want to effectively manage your spending and stay on top of your credit card payments, consider reducing your credit limit. A lower credit limit can discourage excessive spending and make it easier for you to stay within your budget. Contact your credit card issuer to request a credit limit reduction if you find it challenging to control your spending.
Maya’s Landers Cashback Everywhere Credit Card holders can reduce their daily spending limit and customize it for different transactions through the Maya app. Set limits for your online purchases, contactless payments, foreign transactions, and cash advances. This will give you full control over your credit card and your finances.
While this approach might seem counterintuitive, it can help you develop better spending habits and keep you from accumulating more debt than you can handle. Managing a lower credit limit responsibly can improve your credit score over time, which will be financially rewarding to you in the long run.
3) Pay Your Balance in Full or as Much as You Can
You should also commit to paying off your credit card balance in full each month to have a proper handle on your credit card payments. This practice will help you avoid interest charges, which can accumulate quickly and, if you’re not careful, become a significant financial burden.
If it isn’t feasible for you to pay the full balance, aim to pay as much as you can instead. Substantial payments will reduce your outstanding balance faster and minimize the interest you’ll pay over time. Moreover, consistently paying more than the minimum required amount will demonstrate responsible credit usage, which will positively impact your credit score.
4) Avoid Unnecessary Spending
Responsible credit card holders know that their cards aren’t meant to be used for unnecessary spending. Even if you have the power to make them, avoid impulse purchases and discretionary expenses. Prioritize essential spending, and consider whether a purchase is truly necessary before using your credit card on it.
If you can develop a habit of mindful spending, you’ll be able to maintain control over your finances and ensure that you have enough funds to cover your credit card payments. This approach will also help you focus on your needs versus your wants, reduce your overall debt, and mitigate your risk of financial strain.
5) Monitor Your Credit Card Statements
Lastly, make the effort to regularly review your credit card statements. You’ll want to keep track of your transactions and balances so that you can prevent unpleasant surprises and ensure that you’re always prepared to make your payments.
Monitor your statements and be aware of any changes to your spending patterns—for example, how much you’ve been spending on essential medicines. This will allow you to make necessary adjustments to your budget and future purchases.
Also make it a habit to thoroughly check your statements each month and ensure that all the charges are accurate. You shouldn’t rule out the risk of your card being used for unauthorized transactions. If you notice any discrepancies, report them to your credit card issuer immediately to resolve the issue.
For any credit card you successfully apply for, you should be mindful of how you use it and how you’ll take care of the credit card payments from month to month. Consider implementing the tips above to help you stay on top of your bills and avoid the financial pitfalls that come with improper management of your credit. Thoughtful spending and responsible credit card management are what will allow you to enjoy the benefits your credit card has to offer you, without anything getting in the way.
Business News Philippines was launched in October 2015 as a portal for readers to learn more about operating a business in the Philippines.
