Some people are scared at the thought of having a bank cards and potential troubles. There is no reason to be afraid of credit card. Credit cards are often the perfect way to make purchases that you need to purchase items but don’t want to make with cash. This article presents some tips to follow to ensure you use your credit cards.
Never charge items on credit cards that cost far more than you have to spend. Though you may want to use a card to make a purchase that you are certain you can repay down the road, it is not smart to buy something that you clearly cannot easily afford.
If you are having hard times financially, inform the credit card company immediately. If it is possible that you will miss your next payment, your company might work to create a payment plan that is adjusted for you. This might prevent them from reporting any late payments to reporting agencies.
Do not let anyone borrow your charge cards under any circumstance. Even if the friend is a very good one and they are really in need of the card, do not loan them your card. It can lead to large fees if your friend should put more than you had authorized them to.
Lots of credit card companies give bonuses for when you sign up for new credit cards. Make sure that you understand everything that is written in fine print since many credit card companies have specific terms you need to adhere to in order to get bonuses. For example, you may need to spend a specific amount within a certain period of time in order to qualify for the bonus. Be sure that you’ll be able to meet the requirements before you let the bonus offer tempt you.
Credit Score
Keep yourself updated on your credit score periodically. Most credit card issuers consider 700 the cut off limit for determining a good credit score to be anything above 700. Use your credit properly to maintain this level, or if you’re not there, to reach that level. With a credit score of at least 700, you can receive the very best offers with the absolute lowest rates.
When you first receive your credit cards, be sure to sign them right away. People who avoid this step leave themselves open to identity theft if the cards should be stolen. A lot of stores have the cashiers make sure that the signature on the card matches the one on the receipt.
Do not make a payment to your card right after you charge an item. This shows a good payment history and enhances your credit score and better reflects your ability to manage your credit when prospective lenders access your report.
Credit Bureaus
Always make a copy of receipts made from online purchases. Do not throw that receipt out until you have your credit card statement in hand. That way you can compare the two and make sure charges are correct. If the company did not charge you the right amount, get in contact with the company and immediately file a dispute. This method ensures that you are always charged the correct amount on all of your purchases.
Avoid prepaid cards at all costs when looking for a secured card. These are considered debit cards and don’t report to any of the credit bureaus. A lot of them will charge additional fees and are nothing more than a checking accounts. 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.
Review each of your credit card statements as soon as they are available. Report errors and mistakes to your credit company as soon as possible. This can stop you from unfairly high payments as well as protecting your credit score.
Never give out your credit number over the phone if you are not certain of the party you are speaking to. The odds are excellent that an unsolicited request like this is a scam. Only give your number out to trusted businesses and your credit card company when you call them. Don’t just give these numbers out when someone asks on the phone. It doesn’t matter what they say, there is no way to know who they really are.
If this happens then it can make it hard to rent an apartment, finance a car, get insured, finance a car or even get a job.
By following the advice in this article, you should be better prepared to use your credit card smartly. Credit cards are very useful when they are used in the right way, so there is no reason to be afraid to use them. Just keep in mind the advice in this article and you are going to be just fine.
If you can, do not use your credit card at the grocery store or a restaurant. They take longer to appear on a statement, and you may not know your real available balance. It leads to spending larger amounts of money because you do not know the current balance and believe it to be lower.