Have a credit card but fear sky-high bills? The time of fretting over how to handle credit cards is over with these easy ways to manage credit cards in the new year. Set these three credit card goals to avoid overspending and actually earn through credit cards in 2021.
No Credit Card Debt
Snowballing or fast accumulating debts is the major cause of concern for almost all credit cardholders. According to a report by Fox Business, the average 2021 credit card balance reached up to USD 6000. An average person would incur a debt of about USD 1000.
However, careful planning and preparing a wise budget can help to reduce the increasing debt. Another option can be balance transfer credit cards with a 0% initial annual rate of interest. This type of credit card will help your credit card debt be at zero interest for the length of the promotional period. Setting this goal will help in the long run to reduce credit card debt stress. It is always advisable to calculate the monthly debt and pay accordingly. 2021 will be a different year in more ways than one as the world comes back on its feet from a pandemic, therefore financial and credit card planning becomes a very necessary step.
Almost USD 500 Rewards
Credit cards come with reward points and card benefits which become extremely handy in saving money as well as earning as much as USD 500 rewards. Choosing the credit card with the highest bonus points, reward points on transaction and benefits for new cardholders are some of the important points to look out for while looking for a credit card.
Get a credit card with bonus rewards in areas where there is high spending. For instance, a card that earns 4% back on groceries and dining if they are two big expense categories for you. Spending of about USD 1,050 per month will be able to get you USD 500 back. Setting goals to make such wise decisions in 2021 will definitely go a long way.
Maintaining Proper credit score
Credit card scores are vital parameters that determine the level and type of credit card that one can upgrade to. Depending on the set CIBIL score slabs, one can make goals to go up one credit score slab at a time to maintain a steady yet achievable credit score level.
Several ways can be adopted to boost the credit score and one of the most important ones is to pay bills on time, go for EMI options for large transactions, redeem accumulated points whenever possible and avoid defaulting.
2021 is a year to look forward to as businesses and markets open up through the COVID-19 pandemic. Planning ahead becomes a great solution to meet any unforeseen or large expenses.