5 Ways to Make Daily Use Credit Cards Work for You

A daily use credit card can be a great way to protect yourself from identity theft and loss, gain additional insurance coverage, and monitor your spending. But can your daily use credit card also help your credit score while boosting your finances? The answer is yes, and here are a few simple tips to remember. 

1. Don't Carry a Balance.

Keep in mind that you don't need to carry a balance on any credit card in order for it to help your credit score. You can pay off the balance every month and see the same benefits as someone who makes timely payments on $10,000. But you'll avoid paying all that interest. 

2. Pay In Advance.

Credit cards offer tons of flexibility for controlling when and how you pay for things. And one of those options is to pay in advance for certain purchases. If you have the money set aside for a big purchase, apply it to your account now instead of waiting for the item to appear on your statement. And with modern self-service features, you can pay as many times during the month as you'd like. This helps keep balances low, avoid missed payments, and ensure things are paid off. 

3. Adjust Your Due Date.

Did you know that you can usually choose when your payment is due each month? Picking the date that's right for your own personal finances will help you ensure consistent, full payments every month. And if that date needs to be changed later, you can often request a new one again. 

4. Monitor Utilization.

Credit utilization is the percentage of your total credit currently being used. Ideally, this number should stay below 30% to boost credit scores. Assess your monthly spending needs to make sure you can stay below that percentage. If not, ask about raising your limit to bring spending back into the desired range. 

5. Use Automated Alerts.

Today's credit card companies offer many tools to help you manage your spending. Take advantage of these. This includes alerts about large purchases, spending limits without additional authorization, balance alerts, and reminders to pay your bill. All these help you keep payments timely, stick to your budget, and avoid going over your utilization ratio.

Want to know more about using your everyday card to help keep your finances and credit score healthy and happy? Start by learning more about choices and features on available cards. Speak with a credit card provider, such as FCCU - First Community Credit Union, in your area today.