Credit cards are able to help people to purchase things they have in life. Having a credit card can provide opportunity and allows for increased financial freedom. With that in mind, never forget that you must choose your credit cards wisely and use them intelligently.The article will help consumers achieve that balance.
Always make sure there is not a yearly fee attached to any credit card that offers rewards or perks. Premium credit cards can have annual fees anywhere from the $100’s to the $1000’s. If you don’t really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
Do not close credit card accounts without finding out how it affects your credit report.
If you are having any financial problems, let your credit card company know. If you are at risk of being unable to make payments in a timely manner, see if your company will work with you to adjust your payment plan. This could help because they may not end up reporting any late payments to the credit agencies.
If you want a card but don’t have credit, you might need a co-signer. A parent, friend, sibling or other trusted person with previously established credit can be a co-signer. They need to be willing to pay for your balance if you cannot pay for it. This is the perfect way to obtain your first card and start to build positive credit.
Credit Card
Read every single letter and letters from your credit card company upon receipt. You have the right to cancel a credit card if you disagree with this.
Make sure the password and pin number of your credit card is difficult for anyone to guess. Using something like your initials, middle name or birth date can be a costly mistake, as all of those things may be easy for someone to decipher.
Many thieves have admitted to stealing cards from unsecured mailboxes.
Contact your credit card provider and ask if they are willing to lower your interest rates. Some issuers will reduce interest rates if the customer has had a positive credit history with them. It can save you a lot of money later and it doesn’t cost anything to ask them.
If you cannot afford something, don’t put it on a credit card. Just because you want a new flat-screen TV, doesn’t mean a credit card is the best way to buy it. Paying huge amounts of money on interest is not smart and should be avoided. Get out of the store so you can think about it for a while prior to making a decision. If you still decide to purchase it, the store’s financing usually gives low interest rates.
If this happens, finance a car, get insurance or even in some cases, get a job.
Some companies may charge application fees, excessive late charges, cash advance fees and service charges.
If you have credit cards that are sitting unused in your sock drawer, you should close them. Keeping unused accounts open makes you susceptible to identity theft. Also, a lot of companies just love tacking on those annual fees for individuals who haven’t closed their accounts.
Never fax credit card details to anyone. A fax may be left there for a long time while anyone can get the card number. Any one of those people could steal it.This opens you up to fraudulent activity and all of problems that come with it.
You should close any card accounts that you don’t use.Keeping them open makes you to become a victim to identity theft. You also be forced to pay annual fees on something that you do not use.
Unless you want to lose your card and have your account closed, be sure to use your card every once in a while. Many creditors will close down accounts that are inactive. The only thing you can do to make sure that your credit cards remain open is to utilize those cards on a regular basis. Also, be sure you’re paying them off every month so you don’t get into debt.
Suspicious Activity
Check your credit card transactions frequently for false charges. You can also get mobile alerts if they are available. This will allow you to find out about and question suspicious activity as soon as possible after it occurs. If you notice suspicious activity on your account, you should contact your bank immediately, and if you have to, the police.
Keep an eye on your credit score to see if you’re managing your credit well. It is also a good idea to be on the lookout for errors on your credit report. Try to note any cases of reporting errors. If you find errors, notify your credit card company and ask the credit bureaus to remove the errors also.
Some people have problems with spending more than they can afford when they first get a credit card. These are the type of people shouldn’t have a credit card. When they choose to open an account, they’re making themselves prone to having a bad financial future.
With charge cards come many advantages, such as increased financial freedom and new lifestyle possibilities. When used correctly they can be wonderful assets, but when they are used carelessly, the consumer will fall victim to credit misery. The tips above have shown you valuable information on how you can make smarter credit decisions and enhance your life by avoiding credit problems.
If one of your credit cards has lower interest than another, you can utilize that card to pay off the other credit card. Even in cases where the interest rate is similar, one card may provide benefits or rewards that make usage worthwhile. Just be sure that you’re doing the math on these rates first.