JoshThere is a reason that bankers usually have higher credit limits than the rest of society – they understand how to manage their credit in order to receive more benefits on their credit cards. If you want to have more money to spend each month, think like a banker and manage your credit card properly using the tips below.
– The best credit card option will be the one that allows you to gain a limit increase for good behavior.
Look for a credit card program that gives you a limit increase for paying your bills back on time. There are some questionable credit cards that are trying to scam people into debt that they cannot pay back. These programs will give limit increases for holding a balance month over month. However, these are also the companies that will raise interest rates without telling. Stay far away from these companies and focus on those financiers who are doing business above board.
– Put your bills on an automatic payment schedule.
Assuming that you have a steady income and steady bills, you can automate this process so that you can build a positive credit history without even having to think about the process. First of all, make sure that your check is directly deposited into your account every week or every month. Secondly, pay your bills automatically to your credit card and pay the credit card back through the direct deposit account. You will always pay your bills on time, and you will never hold a balance over, getting rid of any interest that you would have to pay. Eventually this will turn into limit increases as credit card companies see that you are a responsible borrower, even though you are really not borrowing anything for an extended period of time.
– Pay down your debt immediately.
One of the best ways that you can manage your credit is to pay down all of your other debts aside from your mortgage. This includes any car loans that you may have as well as consumer debt. Not only will you save money on the interest that you would have paid, but you will also gain the attention of your credit card company. Your debt to total credit ratio will definitely help your overall consumer profile when it comes to increasing your credit limit. Try to keep it below 30% if at all possible.
If you think like a banker, then you will certainly receive more benefits on your credit card. Follow the tips above so that you can take advantage of all of the financial resources that are around you.