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! Charge cards are a huge liability that can wreak havoc on your finances. Continue reading to find excellent tips on using charge cards.
It is a good practice to have more then one credit card. This will increase your credit score over time, especially if you don’t carry a balance from month to month. Having more than three open helps lenders look at you in a bad light when they see your credit report.
Many credit card offers include substantial bonuses for signing up for a new card.
Always make sure there is not a yearly fee attached to any credit card. Annual fees for high end cards can range from $100 to $1000 depending on the card’s exclusivity. If you can’t benefit from a premium card, don’t pay the annual fee.
Always read correspondence regarding your credit cards right when it arrives. Credit cards can make changes to your fees, interest rates or membership fees, provided they let you know in writing of the changes. You have the right, if you don’t like these changes, to immediately cancel the card.
Credit Card
Always make any credit card on time.Additionally, most companies will increase the interest rate on your credit card, meaning you will have to pay off higher balances in the future.
Make a list containing the account numbers of your credit cards and any phone numbers associated with your lenders. Make sure it is in a secure location, like a lock box that does not contain other credit cards. You’ll be grateful for this list in the event that your cards get lost or stolen.
Credit card companies use credit scores for determining the cards to offer customers. The best credit cards are offered to people with high credit scores.
Don’t start using charge cards to purchase things you can’t afford. Just because a nice new TV sounds like a great idea, does not mean it is within your budget. You will end up paying more than it is worth! Make a couple of days. If you still decide to purchase it, the store’s in-house financing usually offers lower interest rates.
Your natural inclination may be to pay down your credit card whenever you have the money to do so. This isn’t always the best move. Instead, pay your entire balance when you recieve your statement. This will improve your credit score and look better on your credit history.
Never leave a space blank spots when you make a purchase. If you are not giving a tip, cross it out so that a tip cannot be written in after you’ve signed. Make sure your statement matches the charges you make.
If the bank refuses after you talk with their retention team, look around for a card with a better rate. After you find one, do not hesitate to make a change.
Be sure to keep track of credit card spending every month. Remember that last-minute or impulse buying can lead to surprisingly high balances. If you don’t pay attention to the amounts you put on your cards, when it is time to pay, you might not be able to afford to pay the bill.
Do not close active credit accounts at once.It may seem like the obvious thing to do to help your credit score, but it will actually have the opposite effect by making your score worse. This is due to the fact that you subtract from the gross credit that you have, and that means that you will have a lower ratio between your total credit and the amount you owe.
Secured Credit Card
If you have more than one credit card, try to pick one to pay off every month. If you have revolving balances on other accounts, keeping one card active that is repaid monthly will have a positive impact on your credit score.
Avoid prepaid cards when you are looking to get a secured credit card. These are typically debit cards and don’t report to any of the credit bureaus.Many prepaid card providers also charge extra fees and they are really just a checking account. Put down a deposit and get yourself an actual secured credit card so that it reports to the credit bureaus, and acquire a secured credit card.
As you can now see, people are often very unaware of the terms regarding their credit use. Apply what you’ve just learned here, and be wiser about using your credit cards in the future.
If you close a credit card, cut up or shred your card, too. If you let your child use it as a toy, or simply toss it in a drawer, it could wind up in the hands of someone else, who could then use the information from the card to reopen your account and make purchases.