The article below discusses some of the best ways to use your credit cards and avoid pitfalls.
Never use a credit card for purchases that are beyond your means. While it is alright to use them to pay for something you can afford at a later date, you should not buy a big-ticket item that you will have a problem paying for.
Always check the fine print on your credit card disclosures.If there’s an offer for a pre-approved credit card or if a person says they can help you get a card, you have to know the details before signing up. It’s very important to understand what interest rate is and payment schedules you’ll be dealing with. You should also be sure to learn of grace periods and any fees that may be applied.
Always read the fine print to see if there’s an annual fee attached to any credit card. Annual fees for black or platinum cards can be very high depending on how exclusive they are. If it is not necessary for you to have an exclusive card, choose a card with lower or no fees.
Before signing up for any credit card, make sure that you comprehend the terms and conditions fully. You might see that their payment schedule, fees, and interest rate are higher than what you thought. Read all the fine print in order to make certain that you understand the card policy completely.
Late Payment
If you lose your job, speak with your card issuer. If it is possible that you will miss your next payment, they may be able to adjust your payment plan and waive any late payment fees. Doing so means they may not report your late payment.
If you aren’t satisfied with you current interest rates, ask your creditor to lower them. If they are unwilling to lower the rate, and you have been paying on time, look at other cards with a better rate. Once you locate one, switch to a card company with better customer service.
Retain a copy of the receipt when you utilize your card.Keep these receipts and compare them with your statement so you can be sure the amounts match. File a dispute with your card company if you were overcharged as soon as you discover it.This is an excellent way to avoid being overcharged for a cost you are always charged the correct amount on all of your purchases.
Maintain a list of all your credit card numbers and account numbers. Keep this list in a safe place, like a safety deposit box, separate from all of your cards. The list will prove invaluable if you lose your cards or stolen card.
It is very important when you get a credit card to keep the account open as long as you can. You should avoid switching to different accounts, if possible. The amount of time you have accounts open impacts your credit rating. A key trick to establishing solid credit is to keep accounts open for long periods of time.
Do not make a payment on your credit card the moment after you charge an item. This will reflect better on your credit score and
Credit Bureaus
Always try to avoid credit cards that have annual fees associated with them. Credit cards that don’t have annual fees are usually reserved for individuals that have good credit scores. High fees will negate any benefits a card offers. Perform the necessary calculations. Credit companies do not make annual feels blatantly obvious; you have to scour the fine print for them. Therefore, it is important to take the time to completely read the fine print. Make sure that you clearly understand the fees, and how they compare to any benefits that the card offers. Your analysis should dictate your decision.
Avoid prepaid debit cards when looking for cards. These are typically debit cards so they don’t report to the credit bureaus. A lot of them charge extra fees and are nothing more than checking account. Put down a deposit and get yourself an actual secured credit card so that it reports to the credit bureaus, and acquire a secured credit card.
You do not want to avoid switching to other accounts unless there is no other option. The length of time you have accounts open impacts your credit score. Part of building credit is keeping accounts open.
Take a look at your credit accounts and close any that have not been used in a while. Terminating these old accounts can protect you from identity theft that may go unnoticed due to the lack of use of the cards. Even if a credit card which you no longer use has a remaining balance, it can still be closed. Just keep making payments until that balance is completely paid off.
Keep a running total of the monthly expenditures you charge to your credit card. Remember that incidental and impulse purchases can really add up fast. If you are not keeping accurate records, by month’s end you may not be able to handle the bill.
If this happens then it can make it hard to rent an apartment, it could make it hard for you to rent an apartment, get insured, get a job.
If you resort to paying off a credit bill using a credit card, be sure the one you pay off first has the higher fees and rates. Even if two credit cards have the same interest rates, some cards have certain reward schemes that make them better value than other cards. It is important however, that you do the appropriate accounting first.
There are oftentimes charges for service, service charges and cash advance fees, cash advances and many other unexpected fees.
Never send credit card numbers. A fax may be left in an office for a long time while anyone can get the card number. Any one of those people could steal it.This may make it easier for someone to commit fraud against you up to fraudulent activity and all of the problems that come with it.
Figure out if your payment date is a suggested due date or a true due date. Suggested due dates are used more frequently and are often 15 days before the real due date. If you have a due date suggested to you, knowing the actual due date can be of assistance in case you require some extra time in order to gather the money.
As stated previously in this guide, it is very easy to get in financial trouble if you do not know how to use credit cards. Getting too many cards, and giving in to the temptation to max them out can leave you in trouble in no time. It is hoped that the advice in this article can help prevent credit card issues for you and help you remain financially healthy.