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 credit cards.
It’s good credit practice to consistently maintain two or three open credit cards. This can build up a credit score, and this is especially true if you’re able to pay them monthly. But, if you have over three cards open, creditors may look upon that fact unfavorably.
Only apply for store if you shop with often. When retail stores put in an inquiry on your credit to qualify you for a card, this gets reported on your credit report whether or not you ultimately get the card. Too many inquiries into your credit can lower your credit score.
If you experience a time of financial difficulty in your life, inform the credit card company immediately. If there is a possibility that you may have to miss one payment, you want them to know so they can work with you, you might be able to work out some sort of adjusted payment plan. This can help because they may not end up reporting your credit score.
If a fraudulent charge appears on the credit card, let the company know straightaway. This gives the credit card companies the most opportunity to catch the person responsible. This will also allow you to be sure that you aren’t responsible for the charges they made. Credit card companies have an interest in making it easy to report fraud. Usually, it is as quick as a phone call or short email.
Do not hesitate to request a lower interest rate.A phone call might be all that is necessary to get a better rate and facilitate real savings.
Don’t write down your password or pin number down. You have to take the time to memorize these passwords and pin numbers to ensure that others can’t access your account.
Make sure that you sign your card as soon as it arrives in the mail. It is easy to forget to do, but if your card is stolen, there is no signature for cashiers to compare. Most merchants require signature verification.
Avoid the temptation to lend your credit card to someone. Even if the friend is a very good one and they are really in need of the card, don’t do it. It may lead to over-limit charges if your friend should put more on the card than you authorized.
Avoid prepaid cards when considering secured card. These are considered debit cards so they don’t report to the credit bureaus. A lot of them charge extra fees and they are basically no more than a checking account. Put down a deposit instead, improving your score.
If you want to have more money, be sure you approach the company that issued your credit card for a lower interest rate. If you have a good credit history with them, they may give you a better rate. All you have to do is make a phone call, and ask for a better rate that will save you money.
Keep careful records of the amount that your monthly spending on credit card each month. Remember that impulse purchasing can be costly. If you don’t keep track of how much you’re spending, you may have a difficult time paying off the bill when it is due.
As mentioned earlier, consumers usually don’t have the necessary resources to make sound decisions when it comes to choosing a credit card. This article has discussed the best ways of using bank cards; hopefully, you found it useful and can apply it to your daily spending habits.
If you’re not happy with the interest rate that you are being charged, ask the bank if they can change it. If the bank refuses after you talk with their retention team, you should search for better rates. Once you find one, switch over to a credit card company that will better service your needs.