How to Improve Your Credit Card Repayments
Is there some way you can improve your credit card repayments without taking extra work? The answer is actually yes. In fact, there are a lot of ways, and as long as you can do them right, you wouldn’t have any problem dealing with your dues.
Here are some of them:
Cancel all but 2 of your cards.
If you have more than three credit cards Singapore, then it’s high time you say good-bye to the rest but two of them. The truth this if you’re not missing any repayments now, surely you will in the next few months or years. You will also discover you’ve been paying a lot of money on the credit cards’ interest.
You may ask, though, “Why should I keep two when I can do so with one?” You can consider the other one as your buffer and it may be used for a potential balance transfer if you want to get rid of the other credit card. This is also how you can maintain a good credit standing in your credit report.
Make use of coupons to buy grocery items.
One of the foremost reasons why you get to use your credit cards is you want to buy groceries, both food and non-food. The problem is when you have the plastic, you no longer mind how much you’re spending.
Here’s a good way to spend less on your groceries and pay in cash: use the coupons. Coupons from various stores are published in newspapers. You can cut them out and present them whenever you make a purchase. It’s not impossible to save around 30 percent of your total cost because of them. You will also be more conscious of the things you’re buying.
Pay them on time.
Don’t wait for the due date to expire before you decide to pay your Singapore credit cards. A lot of these companies don’t know excuses, even the valid ones. You may end up paying more since you have to settle your late fees. The interest rate may also go up the next time you renew your credit cards if they notice you’re a habitual late payee.
It’s very important you keep track of your repayments. If you think you’re going to be busy during the due date, pay in advance. You can also tie your savings or checking account to your credit card. This means that every time it’s due date, the bank will automatically debit the amount from your account.
Don’t settle for the minimum balance.
When you receive your credit card statement, you will see two sets of amount. The first one will be the full amount due and the other is the minimum amount. The latter is advantageous since you get to pay less—but that’s only in the short term. In the long run, you get to pay more since interest rates are charged on the remaining balance. The bigger the balance you carry over, the higher your interest repayments will be.
If you can afford it, don’t pay the minimum balance. Instead, aim for the full amount. It will also help you achieve good standing with your credit card company.
Opt for the ones with the lowest interest rates.
Learn to do credit card comparison Singapore. This is one of the best ways to determine which of them carries the lowest interest rate in the market. Needless to say, interest rate is not the only thing that should concern you. You also have to be mindful of the annual fee, other fees associated with your credit card use (such as late fee and over-the-limit fee), as well as your credit limit. You will get to know more about these once you do your comparison.
Avoid making any cash advances.
Do you know that many credit card users are actually making cash advances? There are times when there are no machines are available to swipe your credit cards to. However, you need the money badly. Thus, you go to the nearest automated teller machine and withdraw by making a cash advance. Sounds easy, right? It is—until you receive your credit card statement. This by far has the biggest interest repayments.
Always include it in your budget list.
When you’re making your monthly budget, please don’t forget to include your credit card repayments. In fact, consider it as your main priority. There are many applications these days you can download for free. You can create a setting where credit card bills will appear in your budget list at all times. This way, you will never learn to ignore it.
If you cannot automatically debit the amount to your account, then at least learn to pay off your dues first once you receive your salary.
Coordinate with your credit card company.
Don’t consider them as your enemies. Rather think of them as your friends. Credit card companies can help you lower down your interest rate or even provide you with a grace period, as long as you can prove to them that you’re a good client. Resource Box: Would you like to know more how to choose