Always think twice before applying for new credit:
Getting instant credit is not at all difficult today. Some retailers and online stores even provide incentives for credits. Once the consumer agrees, the retailer can pull the credit report of the consumer. So, never look for the incentives they give. This can be invaluable in the future when compared to the report that you revealed.
So, always think twice when you are agreeing for new credit. If this is not really necessary, then don’t go for it.
Spending money on gifts:
Even for loved ones, there is no need to spend a lot on gifts. Material items are not the only gifts which you can think of. Most valued gifts need not be expensive items and sometimes they may not cost a penny. Think of gifts like spending some time to visit a person, helping them in their need, and agreeing to look after kids and giving some free time to your friends. These are the best gifts which you can think of. The best thing is to give these gifts you need not use your credit card.
So, without having any financial burden on your shoulder, it is possible to gift people. Always think of alternatives when it comes to giving some useless and expensive material gifts for your loved ones.
Paying credit card bills:
Always try paying the credit card balances in full amount. This will help in avoiding the interest rates which are really costly. Even if you cannot afford a good vacation because of this that fine. Don’t think too much on that. Give preference to paying the credit card bill completely.
Have some plans like paying credit card balance in 2-3 months. This will avoid all the extra expenses which you do without thinking too much. Try to complete or pay off the bills in a limited period. This will avoid the burden of higher interest rates which is unnecessary. There will be revolving interest rates when it comes to credit cards. Always avoid these.
Unnecessary carrying of credit card balance can always affect the FICO score as well. So, plan properly before using credit and plan to pay it on time. If that is a huge amount, then only go for installments or EMIs. In case if it is possible to pay it off just by reducing your usual expenses, then pay it once. If the credit adds up then even the interest rates add up. So, never think of pilling up of interest rates. When you carry higher balances in credit that always affects FICO score negatively.
It is better to maintain a good FICO score which will help in emergencies. This is because since looking at the FICO score itself lenders agree for personal loans.