Establishing New Credit With a Credit Card

Establishing credit is essential for a healthy financial profile and can help you to buy a home, car or business. If you are a first time credit card holder, you may be wondering how you can enjoy the best use of your new card. There are a few tips that will help you to manage your credit wisely and avoid credit challenges.

 

Start Small

If you have never had credit or are re-establishing your credit profile, start small. Go for a card with a low or moderate limit and pay off the balance each month in order to maintain a positive score. Keep your usage of your card low, and avoid maxing the card out each month. By paying your credit card off on time and maintaining a positive profile, you will maximize your buying power down the line.

 

Get Rewarded

Many credit cards offer rewards points for your every day purchases. This can earn you free travel, discounts and cash back. Find out if your credit card offers rewards points. There are several UOB credit cards that will give you points back every time you make a purchase, so use these cards and enjoy rewards for the things you do every day.

 

Cash Back UOB Credit Cards

 

 

Upgrade

Once you have established a positive credit relationship with your credit card company, upgrade by asking for a credit limit increase. This will show the lender that you are responsible with your credit and can manage larger amounts. Your credit card lender will often increase your credit limit after six months to a year of on-time payments. Sometimes they will increase your limit automatically. If they don’t, simply call your card issuer and ask.

 

Take Advantage of Perks

Many credit cards offer perks like extended warranties on appliances, added insurance on rental cards and discounts on travel. Find out if your card offers these perks and take advantage of them for added savings. Most cards have relationships with travel partners and other retailers and will offer added perks like upgrades on hotel rooms, rental cars and airport transportation. You can also get free travel protection on some credit cards which will protect you in the case of an emergency while you are away.

Establishing credit is the best way to secure your financial future and enjoy increased spending power throughout life. By getting a credit card and using it wisely, you will be well on your way to financial success.

 

Your Credit Card Friend Or Foe