If you use credit cards, it’s important to know how to monitor your balance. Credit card debt is one of the biggest money problems in America, and if you don’t know how much you owe on your cards—or worse, if you don’t even check them every month—then there’s a good chance that you’re carrying over an unpaid balance from month to year. But there are other reasons it’s important to stay on top of your credit card balances as well; here are four of them:
To Avoid Credit Card Debt
A credit card balance is a debt that you’ve accrued on a credit card. If the charges are unpaid, they can become a problem when the issuer decides to charge interest. When this happens, it’s referred to as “high-interest debt.”
If you don’t check your credit card balance regularly and pay off what’s due on time every month, then chances are good that you’ll have trouble paying back all of your credit cards in full eventually.
Keep Up with Your Credit Score
The second way to keep up with your credit card balance is to check the status of your credit score. A good credit score will help you get approved for loans, mortgages and other financing options. If you have a low rating, it can make it harder for you to get approved for loans and could affect how much interest they charge.
Avoiding Overdraft Fees
Avoiding overdraft fees is a difficult task. You may not have enough money in your account to cover your purchases, but you don’t want to pay extra for it either. If you don’t watch out for these little fees, they can add up and keep your bank account balance low, leading to more trouble. To avoid paying overdraft fees:
- Keep track of what’s coming in and what’s going out of your bank account so that you know how much money will be available at all times.
- Use online banking and mobile apps so that you always know if there’s enough money in the bank before spending anything else or getting new checks printed.
Protecting Yourself Against Fraud
Most people know that credit card fraud is a real threat, but they do not realize how common it is. According to the Federal Trade Commission (FTC), one in every 24 consumers has their credit or debit card info stolen each year.
If you spot something suspicious on your statement, contact customer service immediately and move money into a new account if necessary! The sooner they can close down that account and eliminate any compromised information (including passwords), the better off everyone will be.
SoFi experts say, “As for how to check a credit card balance, you can do so online, over the phone, or on the monthly statement that comes in the mail.”
Monitoring your credit card balance is a great way to keep a close eye on your finances, and it’ll help you avoid unnecessary stress and financial losses by providing early warning signs. The best part is that monitoring your credit card balance is simple enough for anyone—all you have to do is know what information you need!