While there is a need for cash, some credit cards are also very useful. As debit card fees are increased, a growing number of individuals are just using credit cards for all their electronic money storage and transactions. Keep reading to determine how credit cards wisely.
Don’t use cards to buy items you could never afford. While credit can help you afford things you can pay off over a few months, avoid charging expensive items that you cannot pay off quickly.
Do not close credit card accounts before you understand the impact it may have.
This allows the credit card companies the most opportunity to catch the offender. This is also prevent you from becoming responsible for these charges. You can usually report the majority of fraudulent activity through a quick telephone call to the credit company.
Make your credit payment before it is due so that your credit score remains high. Late payments can cost you a lot in fees. and in the hit to your credit score. You can avoid being late by putting your credit card payments on an automatic schedule.
Annual Fees
Always read the fine print to see if there’s an annual fee attached to any credit card that offers rewards or perks. Annual fees for high end cards can be very high depending on the card’s exclusivity. If you can’t benefit from a premium card, then you can save money and avoid annual fees if you switch to a regular credit card.
Do not have a pin number or password that would be easy for someone to guess. Information like birth dates or middle names make terrible passwords because they can be easily figured out.
You want to stay away from both late charges as well as over limit ones. Both of these are pretty large fees and exceeding your limit can put a blemish on your credit score. Watch this carefully and don’t go more than your credit limit.
Be sure you go over the fine print on a credit card account before using it. The agreement might be rendered in fine print, but it is critical for you to carefully read it.
Do not buy anything with your credit card on a public computer. Computers in public areas such as libraries and coffee shops will store your information. Using your cards on these types of computers is a recipe for disaster. Only use your own computer to buy things online.
Credit cards can be tied to varying types of loyalty programs. If you use it smartly, you can end up with an extra income stream.
Don’t use passwords and pin codes on your cards that can easily be figured out by someone else. Using something like your initials, middle name or your child’s name can be problematic, as it is not difficult for others to find out that information.
Keep a current list of credit card numbers and company contacts. File this list in a safe place with other important papers. Such a list is helpful when you need to quickly get in touch with lenders in the event your cards are lost or stolen.
Don’t use your bank cards to purchase items that are too expensive for you can’t afford. Just because a nice new TV sounds like a great idea, doesn’t mean a credit card is the best way to buy it. You will end up paying a lot of interest and your monthly payments might be more than it is worth! Make a couple of days. If you are still going to purchase, check to see if in-house financing through the store offers a better interest rate than charging it to your card.
For many people, credit cards have become a primary form of electronic payment over debit cards. Thus, there are more opportunities for everyone to find a credit card offer that suits their needs. Implement the tips you’ve just read into your life.
Avoid closing an account. It might seem obvious, so you can increase your credit score; however, if you close accounts, it can turn out to be bad for the score. The reason for this is that the credit reporting agencies look at your available credit when considering your score, meaning that if you close accounts your available credit is lowered, while the amount you owe remains the same.