This Financial Education Month, build smarter credit card habits by spending responsibly, making timely payments, and using credit wisely. A few smart choices today can set you up for long-term financial success!
Saving credit for sudden emergencies
While it’s tempting to use your credit card for everyday purchases, consider keeping it as a safety net for unexpected expenses, such as car repairs or medical bills. This strategy helps prevent unnecessary debt while ensuring you have financial backup when you need it most.
Using for budgeted expenses
A smart way to manage credit card spending is by using it primarily for planned, necessary expenses—such as groceries, gas, utilities, and other essential bills. By limiting your credit card usage to budgeted purchases, you can take advantage of rewards, build credit, and keep your spending in check without accumulating unnecessary debt. This strategy ensures you’re only charging what you can afford to pay off in full each month, helping you maintain financial discipline while maximizing the benefits of your credit card.
Keep utilization below 30%
Your credit utilization—the percentage of your available credit that you’re using—plays a major role in your credit score. Keep your credit usage below 30% to show you can manage credit responsibly to lenders. For a $1,000 limit, aim for a balance under $300.
Consolidate debt for easier repayment
Managing multiple high-interest debts can be overwhelming, but consolidating your balances can make repayment more manageable and cost-effective. Consider a balance transfer or a low-interest personal loan to streamline your payments, reduce interest charges, and accelerate your path to becoming debt-free.
TruMark Financial offers highly competitive credit card rates, making it a smart choice to transfer balances from high-interest commercial credit cards. With lower rates and fewer fees, you can save money and pay down your debt faster helping you regain financial control with ease.
Pay more than the minimum
Making only the minimum payment each month can keep you stuck in a cycle of debt due to accumulating interest. Whenever possible, pay more than the minimum—ideally the full statement balance—to avoid interest charges and reduce your overall debt more quickly.
Let’s build your financial future together!
Have questions? Contact TruMark Financial’s Member Service Center at 1-877-TRUMARK or visit your local branch today.
