Charge cards usually are seen as indicators of high interest rates and bad. However, charge cards offer peace of mind, perks, convenience and even rewards and perks. Read on to learn how to properly utilize credit cards.
It’s a smart practice to have 2 or 3 open credit cards in good standing. If you can pay your bill in full each month, this number of cards will help you to improve your credit score. But, if you have more than three cards, lenders may not view that favorably.
Don’t use credit as an excuse to buy items that you cannot afford. While it’s suitable to pay for an item that you can afford to pay for later, you should avoid impulse and high-ticket purchases until you can save enough money to truly afford them.
You can save a lot of trouble by putting your credit card payments on an automatic payments.
Set a budget and stick to it with regards to your credit spending. Many people think a budget is only for the bills you owe; however, you should also set a budget for credit card usage. Your credit card is not extra money, so never view it this way. Set aside a particular amount you can safely charge to your card every month. Stick to it, and make sure you pay them off every month.
Many vendors now require cashiers to verify a customer’s signature matches so your card can be safe.
Never leave blank space when you sign retail store receipts. If there is a tip line and you are not charging your gratuity, put a mark through that space to avoid someone adding an amount there. Make sure your statement matches the charges you have made.
Never leave a space blank on your credit card receipt when you make a purchase. Always cross out the tipping line, so an amount that you did not authorize is not added in later. You should also check your statements to ensure your purchases actually match the ones that are on your monthly statement.
Keep tabs on the status of your credit score. Most credit card issuers consider 700 as the lowest number you can have while still being considered to have good credit. Use your credit wisely to maintain that level, or if you’re not there, to reach that level. Once your score exceeds 700, you will get all the best offers of credit with the lowest interest rates.
Keep a list of phone numbers for your credit card numbers in a safe location. Put it in a secure location like a safe box at a bank, in a place that is separate from where you keep your credit cards. The list will prove invaluable if you lose your cards or stolen card.
Ask your bank to change your interest rate if you do not like it. If they decline, then you might want to consider looking for a credit card that has better interest rates. After you find one, change to the credit card that will service your needs better.
Interest Rates
Don’t think that interest rates they offer you is concrete and will stay the same way. Credit card issuers have several interest rates they can offer to customers.If your interest rate is higher than you would like it to be, make a call to the bank and talk to them about it.
If you’re using a lot of credit cards, it might be a great idea to use one and pay for it each month. Even if you’re carrying a lot of debt on different cards, having an active credit card that you religiously pay off each month will aid you in building a good credit history.
Ask your credit card provider to decrease your credit card. Some companies are willing to lower interest rates charged to customers if their credit history with them. It may save you a lot of money and there is no cost to asking for it.
Know the credit card laws that you are protected. Credit card issuers may not assess retroactive interest rate hikes, for instance. They are also not allowed to operate on double-cycle billing. The two important laws that have come into effect recently are called the CARD Act as well as the Fair Credt Billing Act.
Use those cards that you don’t wish to lose. Creditors will most likely close any accounts that are inactive. One way to prevent this problem is to make a purchase with your most desirable credit cards on a regular basis. Just make sure that you never charge more than you can afford to pay, so as to avoid falling into debt.
Review each of your credit card statements closely. Report any inaccuracies to your creditors right away. This can stop you from paying too much and it might just save your credit score too.
Credit Cards
Be certain to read all the terms and fine print before agreeing to a credit card that is secured. Most often, you will be required to put up a small deposit, but that may be quickly used up by unforeseen fees, which will in turn reduce the line of credit available to you.
Credit cards offer great benefits when you learn to use them strategically and responsibly. From peace of mind in the event of an emergency to rewards and perks, the benefits of credit cards can enhance your life. Use the advice from this article to most effectively use your credit cards.