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Credit Card Tips – How To Avoid Reaching Your Credit Card’s Limit

List of Credit Card Tips to Prevent Being Left in Debt

CREDIT CARD TIPS – Do you often max out your credit card? Here are some tips on how to avoid reaching the maximum limit of your card.

A lot of people secured credit cards for emergency purposes. It is what they use when they have to buy some groceries or pay the bills and the next payday is still several days away. It can help you make ends meet while waiting for the next payday.

However, if you do not know how to handle a credit card properly, mishandling it can also be a doorway to debts. In fact, the image of credit cards has somehow been tainted by improper usage that led a lot of people in great debts and multiple interests.

Credit Card Tips
Photo: Investopedia

A credit card is a ticket to a lot of purchases – most of the time, it is regardless of the capacity of the holder to make a certain purchase. You can simply have it swipe and charged on your account. There is a credit limit. Unfortunately, there were instances when cardholders have already maxed out their cards even before the urgent need came.

To avoid it, you might be needing some credit card tips on how to avoid maxing out your credit card limit. Based on Moneymax, here is a list of what you can practice to prevent it:

  • Pay Your Balance ASAP – Paying your balance as soon as you can will help you get away from huge interests and can increase your credit limit the next time that you will use your credit card.
  • Regular Review of Credit Card Statements – Regularly check the credit card statements sent to you by the bank to be aware of your outstanding balance and the available credit limit. Most banks also make it available online.
  • Avoid Cash Advance – Also one of the credit card tips is to avoid making cash advances as much as possible. Usually, a higher interest rate is implemented in cash advance thus you can max out your credit limit faster with it.
  • Keep Your Credit Limit High – Based on the article, the ideal spending is only 30% of your credit limit. For example, if your credit limit is Php 50,000.00, the ideal spending must not exceed Php 15,000.00.

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