Having a credit card can be an invaluable resource, especially during times like these when all institutions have their shutters down to avoid social contact. As the FDIC works with state banks and federal financial agencies to initiate prudent measures to assist customers, you must also learn a few tips to manage finances during the pandemic.
Here are some convenient digital solutions to protect your financial health and ways in which credit cards can make your life during lockdown easier.
Mobile Banking Is More Relevant Now
If you’ve relied on conventional banking all this time, you might want to learn about digital banking now. Download the online app of your credit card service provider and familiarize yourself with the tools it offers. It won’t be long before the banking system shifts gears and relies entirely on digital services.
Learning about online banking will also introduce you to credit cards and the resources that they offer. You can track payments, avail discounts, monitor fraudulent activities and transfer funds easily. All this can be done without getting out of your house. Since there’s a statewide lockdown in most regions, it’s best that you stay safe at home and use your credit card for payments and purchases.
Promotional Financing during Pandemic
Shoppers around the globe are stressed out because of the uncertainty in markets due to the coronavirus outbreak. Consumed by mass hysteria, people are rushing to stock up on groceries while they can. They’re worried about managing their daily expenses because job security is at stake for most people.
At a time like this, it would really help to avail the 0% APR on your credit card. The volatility of the financial situation may disillusion buyers from the debt that they’re accumulating. You need to bear in mind that with every purchase, you’re charging a certain amount on your card that will need to be paid off.
The current crisis doesn’t change the basic rules of credit management. You should have a solid debt repayment plan in mind before making any new purchases on your credit card. Set a budget for yourself and adhere to it.
Increase your Credit Line
If you’re strapped for cash, having a credit card can be a relief. Especially during a pandemic when financial uncertainty is plaguing the world, you can’t afford to spend the limited cash that you have.
While it’s useful to have a credit card, you need to resist the temptation to overspend. Since online banking offers ease of payment, it can feel quite convenient to make extra, unnecessary purchases. You might lose track of your debt and ruin your credit score as well.
Maxing out our credit limit is not a great idea because it’s fundamentally damaging for your credit score. It’s better to increase your credit line so that you’re able to cover all your expenses without utilizing all of your credit limit. This also limits the amount of debt and puts less of a financial burden to pay it off.
If you’re looking for more expert financial advice to manage funds during this pandemic, contact us. We offer credit restoration services in Anderson.