- It takes time and effort to build good credit card habits.
- Setting up account alerts could help you better manage your credit card accounts.
Don't forget to use the helpful credit card tools your card issuer offers.
Credit cards make it easy to purchase items, whether you're shopping in-store or online. Using credit cards with care is essential so you don't harm your credit. Luckily, most card issuers provide useful tools to help you better stay on track with your spending and bills, making it easier to make the right moves when using your card. Here are some little-known credit card tips that can help you have better success as a credit card user.
1. Spending alerts can help you stay on budget
With today's high prices, many of us follow a strict budget, so we don't neglect our personal finance goals. If you want to set yourself up for success and minimize overspending with your credit card, you can use spending alerts to help you stay on track.
You get to determine your spending limits. Once spending alerts are enabled within your account, you'll be alerted if you spend over your pre-set limit during your billing cycle. These alerts may make it easier to follow your budget so you don't charge more than you can afford.
2. Set up card balance alerts to monitor your credit usage
Another feature you may want to utilize is card balance alerts. This can be an excellent way to monitor your credit utilization while keeping your spending in check. Your credit utilization ratio, or how much available credit you use, makes up 30% of your FICO® Score. Using less of your available credit and maintaining a lower ratio is best.
With this tool, you can set a limit, and you'll get a notification when your credit card balance is higher than your pre-set amount. This can help you slow your spending, so you don't put yourself in a difficult financial situation or make purchase decisions that hurt your credit.
3. Use payment due date reminders to eliminate forgetfulness
It's essential to pay all of your bills on time. You'll be charged late payment fees if you pay your credit card bills late. Additionally, if you put off paying your bills too long, you may find negative marks on your credit report -- which can impact your credit score.
If you're forgetful, setting up payment due date reminders can be beneficial. When you do this, your card issuer will send you a reminder a few days before your bill is due. This tool makes it easier to remember to pay your bill promptly.
4. Enable fraud alerts to protect your account
While many credit card issuers have built-in fraud protection capabilities, taking steps to protect yourself even further isn't a bad idea. You can set up fraud alerts through your card issuer and get notified as soon as a potentially fraudulent transaction occurs.
For example, if pricy purchases are out of the norm for you, it may make sense to enable your alerts, so you're notified if a costly transaction occurs. You can set up security alerts so you're notified when a single transaction over a certain dollar amount is charged to your card. This way, you can quickly determine if fraud has occurred and take action.
Use alerts and notifications to your advantage
These are just a few tips to help you be a better credit card user. Using the many tools your card issuer provides makes it easier to manage your credit card accounts and make choices that help you keep your finances and credit score in check.
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