The article below has been created to help you figure out how to use your credit cards and avoid pitfalls.
Try to keep at least two, but not more than three, credit lines open simultaneously. Having two or three cards will help you to improve your credit rating. That said, if you go all out and open four or more cards, it may look bad to lenders when they evaluate your credit reports.
Many card offers include substantial bonuses when you open a card.
Always read the fine print to see if there’s an annual fee attached to any credit card that offers rewards or perks. Annual fees for black or platinum cards can be very high depending on how exclusive they are. If you don’t need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
With any credit card debt, you need to avoid late fees and fees associated with going over your credit limit. Both are high fees and going over your limit will also damage your credit score. Be sure to never pass your credit limit.
Set a fixed budget that you can stick to. You should not think of your credit card limit as the total amount you can. Be aware of what you can pay monthly so you may make responsible spending decisions.
Credit Card
As soon as you receive your credit cards, sign them. A lot of people skip this step and have their cards stolen. Lots of venders will require a signature verification when purchasing from them.
It is normally a wise idea to apply for a credit card as soon as you become old enough to have one. Although you might be tempted to jump right on in like everyone else, it’s in your best interest to learn more about how credit works before you make this decision. Spend a few months just being an adult and learning what it will take to incorporate credit card.
Never leave a blank spots when signing credit card receipts. If there is a blank for a tip, put a mark through that space to avoid someone adding an amount there. Make sure your statement matches the purchases you make.
Read every single letter and email that you receive from your credit card company as soon as you get it. Credit card companies are allowed to make certain changes to fees, regular interest rates and annual membership fees, as long as they give you written notice of the changes. If you have an issue with these changes, you have every right to cancel your card.
You receive yet another piece of unsolicited “junk mail” urging you to apply for a shiny new credit card. Sometimes you may want a new card, and often times you may not be. Always rip up any credit card offer that you plan on throwing away.
Have a list with 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 will prove invaluable if you lose your cards or stolen card.
Don’t make a written record of your credit card’s PIN or password. You need to memorize your password, as this is the only way you can ensure that no one else will find it and use it improperly. If you write it down and keep it near the card, it will be like giving someone an invitation to commit fraud.
Do not make a payment on your credit card the moment after you use it. This will help to improve your credit score as well.
Compare your statements to make sure they match up.
Check old credit card accounts and try closing any that aren’t in use. When an old account is closed, people won’t be able to use it fraudulently. If you don’t want to use the account anymore, you can still close it if there’s an unpaid balance on it. You simply keep paying down the balance until the debt is repaid.
Avoid prepaid cards at all costs when looking to get a secured credit card. These are typically debit cards and don’t report to any of the credit bureaus.A lot of them will charge extra fees and are basically no more than a checking accounts. Put down a deposit instead, improving your score.
As previously discussed, it is extremely easy to get in over your head when you utilize charge cards. Getting multiple cards or charging too much can get you into a great deal of trouble. It is hoped that the advice in this article can help prevent credit card issues for you and help you remain financially healthy.
Though you may want to use a credit card for all purchases, in terms of smaller expenditures, you should probably stop yourself from doing so. A lot of vendors require you to buy a certain amount of things before you can use your card, so you may end up buying things you do not really need. The rule of thumb is to use your credit card when the amount due is over $10.