Let’s be honest, in this day and age, people can use all the education possible on how to manage credit cards responsibly. Credit cards can either be an excellent tool for building your financial life or a great service when used properly. Continue reading for some great advice on how to properly use credit card tips.
It is a good idea to have a couple of open credit cards. This helps build up your credit, particularly if you pay your cards in full monthly. However, if you do open more than 3 accounts, it will not be a positive for prospective lenders.
Many people have bad credit cards incorrectly. While going into debt is unavoidable sometimes, some simply abuse their cards and rack up payments they cannot afford. The very best strategy is to pay off your entire balance each month. This will allow you to use your credit rating.
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 black or platinum cards can be very high depending on how exclusive they are. If you will not use the benefits of an “exclusive” card, these cards aren’t for you.
Lots of credit cards come with hefty bonus offers when you sign up. Read the terms carefully, however; you may have to meet extremely specific criteria in order to get the signing bonus. One of the typical conditions placed on a credit card bonus is a requirement that you use the card to make a fixed amount of purchases within a given time frame. A bonus offer that you do not want to claim is not a very tempting one!
Credit card companies state your minimum payment and hope you will not pay more so they can. This naturally means that you should always pay some amount over the least allowable amount. Avoid costly interest fees over the long run.
Credit Card
It is good to keep in mind that credit card companies are not your friends when you look at minimum monthly payments. They set minimum payments in order to maximize the amount of interest you pay them. Every dollar over your minimum payment goes to pay off your balance, so always pay a higher amount than the credit card company asks you to pay. Paying off your balance faster helps you avoid expensive finance charges over the life of your debt.
Pay off your credit 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.
Use all of your credit cards intelligently. Limit spending and only buy things on your credit card that card. If you carry a balance, you will remain in charge of your financial health.
Don’t write down your password or pin number. Make sure you know your password so you ensure that only you have access to it. Writing down your password or pin number, and keeping it with your credit card, will allow anyone to access your account if they choose to.
Credit Card
Always make any credit card on time. On top of that, the majority of credit card companies reward this behavior by raising interest rates, and this means all future transactions will cost more in the long run.
Make a list containing the account numbers of your credit cards and any phone numbers associated with your lenders. File this list in a safe place with other important papers. Use this list to contact your credit card issuers if your credit cards are ever lost or stolen.
Credit scores are always used by credit card issuers to decide which cards an individual consumer may receive. The best cards are only given to consumers who have very high credit scores.
Have a list you keep of your credit card accounts by number as well as lender’s emergency phone numbers. Keep this list in a safe place, such as a safety deposit box, away from each of your credit cards. The list is useful as a way to quickly contact lenders in case of a lost or if they are stolen.
If you are shopping around for secured cards, stay away from prepaid cards. These are typically debit cards and don’t report to the credit bureaus. Prepaid debit cards do little for you besides provide you with an additional checking account, and many prepaid debit companies charge high fees. Put down a deposit instead, and acquire a secured credit card.
Most experts agree that the maximum limit on your credit cards should not be more than 75% of what your monthly salary. If your level of debt exceeds your monthly salary, you need to start paying off that debt right away. This is mainly because your interest you pay can quickly get out of control.
As previously stated, consumers are often alone in the financial jungle and that includes being subject to incredibly high interest rates from credit card companies! This article has discussed the best ways in which charge cards can be used. It is hoped that you can apply this information to your financial life.
Do not use a credit card to pay for itself. In an emergency, some people borrow from their credit card so that they can mail in a payment and get through the month. The interest rates involved with a cash advance creates a larger debt.