Bank cards can be considered both good and bad spending decisions. However, if used well, you can get rewards in addition to the benefit of peace of mind. Read on to learn how to properly utilize bank cards in a positive manner.
Try to keep at least two, but not more than three, credit lines open simultaneously. 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.
It is a good idea to have two to three charge cards. This helps build up your credit, particularly if you pay your bill in full. However, if you open more than three, it will not be a positive for prospective lenders.
Many card offers include substantial bonuses when you open a new account.
Check over your agreement, and make sure you understand all the terms before using your credit card. Credit card issuers will generally interpret the use of the credit card as an acceptance of the credit card agreement terms. It seems tedious to read all that fine print full of legal terms, but do not skip this vital task.
You want to stay away from both late charges as well as over the limit ones. Both of these are expensive fees and going over your limit can put a blemish on your credit score. Be very careful to never pass your credit limit.
Credit Card
Experts recommend that the limits on your credit cards shouldn’t be any more than 75% of what your monthly salary is. If your limit is higher than one month’s salary, work on reducing your balance immediately. Your interest will quickly become unpayable.
It is not a good idea to get a credit card as soon as you become old enough to have one. Although this might be what most people do, you should do some research to find out more about the credit industry before you make the commitment to a line of credit. Spend some time living as an adult before applying for your very first credit card.
Do not be hesitant to inquire about getting a lower interest rate in order to lighten your debt load.It doesn’t hurt to give your company a call to get the rate that you want.
Review each of your credit statements closely. Look for any errors with the charges that you made and make sure there are no unauthorized charges. Report any mistakes to the credit card company as soon as possible. By keeping a close eye on all of your statements, you will prevent inaccurate charges and keep your credit score high.
Be careful when you choose to use your credit card on the Internet. Prior to placing personal card data online, make sure that the website is secure. This is the best way to keep all of your personal information away from prying eyes. Be very careful when replying to any emails you receive that ask for card information as these are attempts at getting your personal information.
Have a list you keep of all your credit card accounts by number as well as lender’s contact numbers. Keep it in a safe spot, like a safety deposit box, away from each of your charge cards. The list is useful as a way to quickly contact lenders in case of a lost or if they are stolen.
Never send your credit card information through a fax machine. Faxes can remain in the office of a recipient for hours or days, which gives their entire office access to your personal credit card number. If any of those people is a thief, you are in trouble. This could open your credit card to fraudulent activity.
Bank Cards
When used the correct way, bank cards have many benefits. Whether it is the confidence and peace of mind that comes with knowing you are prepared for an emergency or the rewards and perks that give you a little bonus at the end of the year, bank cards can improve your life in many ways. Just use your credit wisely so that it benefits you, instead of increasing your financial challenges.
Be sure that your teenager knows how to handle a credit card wisely before you co-sign for a credit account. While it might be difficult to consider your child too immature for a credit card, it will likely lead to much better spending habits down the road.