A credit card comes with the aura of having money galore at your fingertips. But if you don’t use your credit card responsibly, you’ll be tempted to make up to 100% more useless purchases than you would with cash. With the influence of social media and peer pressure, it is common for Singaporeans to splurge on luxury goods to keep up with the jones. That can bury you in debt and ruin your credit score. To avoid this, read the tips below. You’ll learn how to make the most of your credit card to enjoy the many perks that come with having one and to improve your credit score. 1. Work With A Budget A lot of people buy things they don’t actually afford when they have a credit card. Using cash is easy: it tells you the exact amount you can spare, so you have to stick to that sum, whether you’re paying for a dinner out or a new suit. Credit cards don’t give you a realistic idea of how much money you have because you can postpone paying for your balance and because there are no immediate penalties. To avoid falling in the trap of useless purchases, establish a budget. For instance, 60% of your budget can be allocated for necessary items you can’t live without, like paying your bills and food. 20% can go to things you don’t necessarily need, like new books or new clothes, and 20% for savings and paying your balance. Of course, many people confuse things they need with things they want but don’t need, which makes them more likely to incur additional payments on their credit card. 2. Keep Track of Everything After you’ve set up your budget, you can start spending your money. But that’s not the last step because you need to keep track of every purchase you make. Your credit card is likely to come with an app, so that will help you analyze your payments. The app will help you stay disciplined and accountable, provided you’re not going over the limit you’ve set. If not, you can
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