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.This article provides great advices for the ways to best use credit to your advantage and not let it get you into financial trouble.
You should try to have at least two open cards or possibly three open credit accounts. This will help build your credit score, especially if you are able to pay the cards in full every month. 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.
It is a good practice to have two to three bank cards. This can help you to build a credit history and improve your credit score, particularly if you pay your cards in full monthly. However, if you do open more than 3 accounts, a lender may think that’s no good when looking at your personal credit bureau report.
You can save a lot of trouble by establishing automatic payments through your bank or credit card company.
Always know what rate you are paying for interest. This is very important: prior to singing up with a credit card company, be sure you know what rate you’re paying. Choosing a card with a high interest rate will cost you dearly if you carry a balance. If you have to pay a lot of interest, then it may be impossible for you to make your monthly payments.
If your financial circumstances become more difficult, tell your card company. If there is a possibility that you may have to miss one payment, by contacting the company that issued your credit card, which they usually do. This could prevent them from turning in a late payment to the large reporting agencies.
Fine Print
Create a budget for your credit cards. Include your credit when planning your monthly budget. You do not want to think of your credit card as extra money. Know how much you have allotted each month and keep a close eye on your spending to ensure you stick to it. Restrict your credit spending to that amount and pay it in full each month.
Be sure you go over the fine print on a credit card account before using it. The fine print may be small; however, but it is important to read it carefully.
It is not be in your best interest to get your first credit card the moment you are old enough to do so. Although many people do this, you should do some research to find out more about the credit industry before you make the commitment to a line of credit. Spend a few months just being an adult before applying for your very first bank cards.
Don’t believe that interest rates they offer you are concrete and are staying that way. Credit card companies compete with each other for your business, and they all use a range of different rates to attract cusotmers. Call your bank if you are unhappy with the interest rate given to you.
Credit Card
Be careful when you use your credit card online. Prior to entering any credit card info, ensure the site that you are utilizing is a secure one. Secure sites keep your card information you enter safe. Be sure to ignore emails asking for personal information: you should call the company or go to their website and do not reply to those emails.
A great tip for any card holder is to get an annual credit report to be sure everything is right. Match your debts on the report to make sure that you are being charged with no mistakes.
Don’t think that interest rates they offer you is concrete and will stay the same way. Credit card companies normally have several interest rates they can use at their discretion. If you think your rate is too high, call the bank or company and ask for a lower one.
Do not close too many credit accounts. You might think doing so would help, but it can actually harm your credit. The reason for this is that the credit reporting agencies look at your available credit when considering your score, the less total credit you have available, while the amount you owe remains the same.
Only carry around a credit card that you need daily. Only carry the cards you use most, no matter how many you have. Usually, this will include a gas card and one major credit card. Leave your other cards at your residence where they are safe, and you can get to them easily if your wallet or purse is lost.
Interest Rates
Ask your credit card provider if they are willing to reduce the interest rates associated to your credit card’s APR interest. Some issuers will reduce interest rates charged to customers if the customer has had a positive credit relationship is in good standing. It can end up saving you quite a bit and is not going to cost you to simply ask.
Calling the company to report a missing credit card should be your first priority when you lose one. You could be held responsible for charges placed on the stolen card before it is reported as missing. As soon as you report your card missing to your credit card provider, they can no longer ask you to pay for any unauthorized charges.
You should not switch to different accounts unless it is absolutely necessary. The total amount of your history with a creditor is one factor in your credit score. Keeping accounts open whenever possible is one element of building a strong credit history will benefit your score.
Having a credit card can present some challenges as well as rewards. It can provide financial flexibility, but it can also burden a card holder with excessive debt. Use the tips here to avoid the pitfalls of using credit cards. Having good credit is important, and knowing how to handle a credit card is one of life’s challenges. You should be armed to handle it.
Don’t use rewards cards exclusively and forget about your debit card. You may be able to successfully charge everything to a particular card in order to obtain free plane tickets. However, the interest expense you rack up will rival the cost of many flights.