Charge cards can give you a lot of points for things like vacations, if used properly.Other people who fail to use credit cards may charge their vacation expenses and end up with a hefty bill. Keep reading to figure out what you can do to have and maintain a good credit card.
Pay your monthly statements on time. Know what the due date is and open your statements as soon as you get them. Late payments can damage your credit score and often involve costly fees. You can save time and money by establishing automatic payments through your bank or credit card company.
Don’t use cards to buy items that are outside your price range. While it is okay to use your card for something that you know you will be able to afford to pay in the near future, it is not a good idea to purchase something you will have trouble paying down the line.
It’s useful credit practice to consistently maintain two or three active credit cards. This will help you build one’s credit score, particularly if you pay your cards in full monthly. However, if you have over three, it may not look good to a lender when they pull your credit bureau report.
If your financial situation takes a turn for the worse, it is important to notify your credit card issuer. You may be able to adjust your payment plan so that you won’t miss a credit card payment. Most companies will work with you if you contact them in advance. Doing so could help you avoid being reported to major reporting agencies for the late payment.
Always pay off credit card payments on time. You also run the risk of being charged a higher interest rate on any purchases, which will cost more later.
Many vendors now require cashiers to verify a customer’s signature matches the one on the back of their credit card in order to reduce the number of fraudulent transactions.
Adhere to a smart budget. Just because you have a limit on your credit card that the company has given you does not mean that you have to max it out. Only spend what you can afford so that you can pay the bill off at the end of the month.
Many thieves have admitted to stealing cards that were in mailboxes when those boxes did not lock.
Card Information
Don’t use passwords and pin codes on your credit cards that can easily be figured out. For instance, using a loved one’s birth date or your middle name could make it easy for someone to guess your password.
Be careful when you use your credit card online. Before you enter any of your credit card information, ensure you’re using a secure site. A secure site ensures your card information 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.
Have a list you keep of all your credit card account numbers and lender’s contact numbers. Keep this list in a safe place, such as a safety deposit box, away from each of your bank cards. The list is useful as a way to quickly contact lenders in case of a lost or if they are stolen.
Do not apply for any credit cards by mail if your mailbox is not lockable. Many of the credit cards reported stolen have been taken from unlocked mailboxes.
Compare your report to your statements to the debt on your credit report and make sure they match up.
Even without the advantages of points and perks like vacations, charge cards can be great tools to have at your disposal. Those that do not use their bank cards wisely will benefit from the strategies written here. Use the information you have learned here to be in the group you want to be in.
Carefully consider all the fees associated with a particular card. The interest rate and APR are important, but be mindful of all the fees that come with a card. There are oftentimes charges for service, applications, cash advances and many other unexpected fees.