Let’s be honest, in today’s society, consumers need all the advice they can get on managing their finances and avoiding the pitfalls presented by over-spending! Bank cards are a huge liability that can wreak havoc on your finances. The following article below discusses the best ways to use credit cards.
It is a good idea to have two to three credit card accounts open. This will help build your credit score, especially if you are able to pay the cards in full every month. If you have more than 3 credit cards however, that might not look right to a lender who looks as your credit report.
Always make sure there is not a yearly fee before accepting an exclusive credit card that offers rewards or perks. Annual fees for high end cards can be very high depending on the card’s exclusivity. If it is not necessary for you to have an exclusive card, find a card with no annual fee and don’t waste your money on the premium card’s steep annual fees.
Credit card companies set minimum payment and hope you will not pay more so they can. Always pay above the stated minimum. Avoid costly interest fees for long periods of time.
You don’t always want to get yourself a credit card as soon as you possibly can. Though it is a common occurrence, it is best to spend time learning about the inner workings of the credit industry before you wade in. See what it is to be an adult before you jump head first into your first credit card.
You want to stay away from both late charges as well as over limit fees. Both of these are pretty large fees and going over your limit will also damage your credit score. Be very careful to never spend above the credit card.
Pay 100% of your whole card bill each month if you can. In an ideal situation, you shouldn’t carry a balance on your credit card, and are completely paid off before the next billing cycle starts.
Be sure to watch out for changing terms. Credit card companies have recently been making big changes to their terms, which can actually have a huge impact on your personal credit. The statements that most apply to you are typically hidden within confusing words and phrases. Do not skip anything when reading, and pay particular attention to fees or rate adjustments.
Always monitor your current balance.Be sure you know your credit card account. Going over this limit will raise your fees and your overall debt. It will take forever to pay off the balance if you continue to go over the limit.
Be smart when using charge cards. Limit spending and just buy things on your credit card that card. When you carry over a balance, it is too easy for the debt to grow and this makes it more difficult to clear completely.
Public computers should never be used to buy items with your credit card. Your important information will end up stored on the computers. Inputting your credit card information on these computers is asking for trouble. Whenever you make a purchase, do so on your computer.
Never leave blank spots when you make a purchase. If your receipt includes a space for indicating a tip, cross it out so that a tip cannot be written in after you’ve signed. Make sure your statements match the purchases you have made.
Do not document your password or pin number down at any time. You need to just remember what your password without writing it down so that other people can’t access it.
Avoid the urge to lend a credit card to someone. Even if it’s a good friend that needs something badly, it’s not smart just to lend a card out. Lending out a credit card can have negative results if someone charges over the limit and can hurt your credit score.
As mentioned earlier, consumers usually don’t have the necessary resources to make sound decisions when it comes to choosing a credit card. Ideally, you have picked up some handy spending advice from this article and have a better idea about how to use your credit cards in a safe and responsible manner.