Let’s be honest, in this day and age, consumers need all the advice they can get on managing their finances and avoiding the pitfalls presented by over-spending! Credit cards can either be an excellent tool for building your financial life or a great service when used properly.Continue reading for great advice on how to properly use of charge cards.
Only open a credit card at a retail store if you shop there often. Every time you apply for a retail credit card, an inquiry is noted on your credit report. A lot of inquiries from stores can lower your credit rating.
Do not close credit card accounts without finding out how it affects your credit report.
Always have a budget when it comes to using charge cards. You should have a budget for your income, so include bank cards in that budget. You should not want to think of a credit card as simply extra spending money. Set aside a certain amount you can safely charge to your card every month. Stick to that budget and be sure to pay it in full every month.
You want to stay away from both late fees and over the limit ones. The fees you have to pay can be very costly, and it can also do some serious damage to your credit score. Don’t pass your credit limit or you will suffer.
Creditors use your credit score to determine what type of card they are willing to offer a potential customer. The best bank cards are offered to people with great scores.
Never leave a space blank spots when you sign retail store receipts. If you are not giving a tip, it’s a good idea for you to zero it out or line through it so that an unauthorized amount does not appear on your final bill. Make sure your statement matches the charges you make.
A co-signer is a good way to get your first credit card. This can be a family member or friend with existing credit. Your co-signer must sign a statement that makes them responsible for the balance if you default on the debt. This works great for getting a first credit card that you can use for building credit.
Never give in to the temptation to allow anyone to borrow your credit card to a family member or friend. Even if it is a great friend of yours, don’t do it. It can lead to large fees if your friend should put more on the card than you had authorized them to.
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When signing credit card receipts in stores, don’t leave blank spaces. If you do not want to leave a tip make sure to write a zero or draw a line to indicate no tip is included and nobody can add an amount in. Always verify the fact that your purchases agree with what you statement says.
Be careful when making online purchases with your credit card for payments online. Prior to placing personal card data online, be sure you’re using a secure site. Secure websites will keep your card information you enter safe.Be sure to ignore emails asking for card information as these are attempts at getting your personal information: you should call the company or go to their website and do not reply to those emails.
Keep yourself updated on your credit score. Most credit card issuers consider a good credit score to be anything above 700. Make good use of your credit to maintain this level, and maintain it once you get there. Once your score hits 700 or above, you’ll be offered excellent credit offers with very low rates.
Be cautious when you use a credit card online. Prior to entering any credit card info, make sure that the website is secure. Secure sites keep your card information safe. Also, disregard emails which attempt to collect credit card information.
Never give out a credit card information to anyone who calls or emails you. Scammers will often use this trick all the time. Only share your card number with trusted businesses you can trust. Never give this information to anyone who has called you. No matter who they claim to be, there is no way for you to know who you are talking to.
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Don’t believe that interest rates they offer you are concrete and are staying that way. The credit industry is very competitive, and you can find many different interest rates. If your interest rate is higher than you would like it to be, make a call and ask the bank to reduce it.
Always review your monthly credit card statements. Report errors and mistakes to your credit card company right away. This can stop you from paying too much and it might just save your credit.
Don’t lie about your income in an attempt to qualify for a higher limit credit than you can manage. There are companies that will not do an income verification, which can put you in serious financial trouble if you charge beyond your means.
If your card’s current interest rate does not please you, speak to your bank about lowering it. If they will not do so, it might be time to shop for a new card. After you find a better rate, do not hesitate to make a change.
If you have several bank cards, it is a good idea to single one out and pay it off every month. Even if you are carrying significant debt on other cards, having an active credit card that you religiously pay off each month will aid you in building a good credit history.
You are always free to ask your credit card company to obtain a lower rate.
Avoid paying for restaurant checks and grocery bills with credit, as they can take a while to appear on your statement, which will make you underestimate what your true balance is. This may result in you spending too much money when you see an artificially low balance.
Credit Card
Close down any credit card accounts that you are not using anymore. Keeping them open may cause you to become a victim to identity theft. You also may end up having to pay annual fees on the credit card account open that you aren’t using.
If you have had a secured card that has stayed in good standing for awhile, a company may be willing to offer you a credit card that is unsecured. You may also find that you start receiving mail offers for credit cards. That is when you need to enter decision-making mode once again, to re-evaluate your financial situation and needs.
As mentioned before, consumers often feel like they have no allies when it comes to credit card companies. This article has covered how to use your credit card responsible, so you now have the tools needed to be a responsible consumer.