Smart Tips for Paying Your Credit Card Bill Each Month

Your credit cards are a great way to make convenient and secure purchases. However, the manner in which you manage your credit card spending and payments reflects on your credit report. In order for you to continue building good credit, you should have a solid plan you can follow for making purchases and paying the bill each month.

Charge only what you can pay

Each month, only use your credit card to charge what you know you can pay at the end of the month. In order for your credit card to remain in good standing and your credit report to continue building a good score, you need to be able to pay your charges each month. Plus, any balance that you carry over to the next billing cycle on your credit card is charged a finance fee, which can become expensive, depending on the size of your balance and the interest rate attached to your account.

Charge only small amounts of your credit limit

Many people view their credit limit as “extra” money and charge recklessly to their credit card. A good rule of thumb is to never charge more than 30% to 50% of your available credit limit. The lower you keep your credit card balance, the better your credit score will be.

Pay the bill as soon as you receive it

You should receive your credit card statements every month by mail or electronically via e-mail. The best way to keep them paid on time is to send a check in the mail or make an online payment the day you receive the statement. This prevents you from forgetting to make the payment on time and prevents any finance charges on outstanding balances.

If you can’t pay your statement right away, put it on your calendar. Allow at least 10 business days for your credit card to process your payment. You want to always make payments before the due date so that you do not receive a late charge or a late payment mark on your credit report.

Pay your balance in full

The best way to manage your credit is to pay your credit card balances in full each month. Paying in full assures you that the charges you made do not receive additional fees in the form of finance charges.

If you cannot pay in full, at least remit the minimum payment due. Your statement will provide you with a minimum payment amount and the date it is due. Though it is always better to pay in full or pay more than the minimum, you need to pay that minimum amount to ensure that your credit remains unscathed.

Use these tips to manage your credit card statements and pay your credit card bills on time. Your attention to the charges you make and paying your balances on time ensures your credit score remains strong.

Write to Grace Carter at grace@creditdonkey.com