“Using a good credit card not only makes your finances more stable, it also improves your finances,” said Amit Brahme, senior director of new immigrants and ethnic diversity at Royal Bank of Canada. improve your credit score. Moreover, there are a lot of them now credit have bonus points or cashback offers so you can benefit from it.”
Here are Mr. Brahme’s top 3 tips on how to control your spending with credit cards:
• Record expenses: Your monthly credit card statement will itemize each item in detail card consumption, which allows you to see where and how money was spent. This data will help you understand what you need to cut back on and how much you need to budget each month for things like groceries or gas.
• Full monthly payment: As long as you Pay off your credit cards every month, you will not have to pay any interest. This way, you can control your credit card spending and not go over your budget.
• Use your credit card wisely: Before making a large purchase, consider whether you really “need it” or just “want it.” You’ll want to keep track of how your credit limit is being used. The percentage of available credit you’ve used is called your credit utilization ratio. The basic rule is to keep this ratio below 30%; The lower the ratio, the better your credit management, giving you a better credit profile.