Credit cards are usually associated with high interest rates and bad spending in the economy. However, properly used, it offers peace of mind, convenience and even rewards and perks. Read on to learn how to properly utilize credit cards.
Never close a credit account until you understand how it affects your credit history. Sometimes it is better to leave an unused credit account open than it is to close it. It is also important to keep your major credit accounts active so that you do not lose a big portion of the credit history that you have built up over the years.
Never use your bank cards that are beyond your means. While it is fine to use them for items you may afford later, it is not a good idea to purchase something you will have trouble paying down the line.
Always check the fine print on your credit card disclosures.If there’s an offer for a pre-approved credit card or if a person says they can help you get a card, make sure you understand the full picture. It’s very important to understand what interest rate is and payment schedules you’ll be dealing with. You should also learn about grace periods and any fees that may be applied.
If you want a good credit card, be mindful of your credit score. Creditors use your credit score to determine what sort of card they are willing to offer a potential customer. Most of the time, cards with the lowest interest rates and bonus features are offered to those with the best credit scores.
Bank Cards
Make sure to schedule a budget when you are using your bank cards. You should have a budget for your income, so include bank cards in that budget. You do not want to think of a credit card as extra spending money. Set aside a certain amount that you can use to pay for credit card every month. Stick with it and be sure to pay it in full every month.
Stay current on changes to your user terms or conditions. Companies often come out with new terms and conditions, even more frequently than in the past. Sometimes, the most important changes are hidden deep in the document. Make certain you review all changes so that you know how they may impact your finances.
Do not use your credit card for buying things you simply cannot afford. Just because your credit limit is high enough to cover that flat-screen television you eyed at the store, doesn’t mean a credit card is the best way to buy it. You will end up paying a lot of interest and monthly payments might be more than you can afford. Make decisions only after thinking them over for a habit of days. If you still want the item, ask the store if they can beat your credit card’s interest rate.
Retain a copy of the receipt when you utilize your card. Keep these receipts and compare them with your statement so you can be sure it is the correct amount. File a dispute with your card company if you were overcharged as soon as you discover it. This is necessary to ensure you don’t get overcharged for your purchases.
If you use your credit card to make online purchases, be sure the seller is a legitimate one. Try out any telephone numbers they have listed, and if there is no address listed for the seller, treat this with suspicion.
Card Information
Be careful when you choose to use bank cards to make purchases online. Before entering any of the information for your credit card, make sure the site you are using is secure. Secure websites will keep your card information safe. Be very careful when replying to any emails you receive that ask for card information as these are attempts at getting your personal information.
If you find yourself dissatisfied with the interest rate on your card, request an adjustment. If they can not lower your rate, look around for a card with a better rate. After you find it, transfer your debt to the new card.
Credit cards offer great benefits when you learn to use them strategically and responsibly. From the peace of mind of having some flexibility and emergency space, to the possibility of racking up perks and rewards, the bank cards now or soon to be in your wallet can actually make your life a brighter one. Apply what you’ve learned here to succeed with credit cards.