Bank cards are helpful to people who want to build credit and handle money conveniently. You must understand the advantages and pitfalls of having access to easy credit. The following article discusses some of the best basic credit card fundamentals aimed at helping consumers make smart decisions about their finances.
If you want a credit score that is good, be sure that you’re able to pay credit card payments before it’s due. A payment that you make too late, will lower your credit score, while costing you a lot of money. Set up a payment schedule that is automatic so that you can save some time as well as put some money back into your pockets.
It is wise to have a couple of credit card. This is especially helpful when building a good credit score, especially if you are able to pay the cards in full every month. However, if you open more than three, a lender may think that’s no good when looking at your personal credit bureau report.
Do not close credit card accounts until you know the full effect it could have on your credit report.
Make sure you are smart when using a credit card. Put a limit on how much you spend and only buy items you know you can afford. Before you buy something with your card, be certain you can pay for it in full when you get your statement. If you carry a balance, your debt will grow and the total balance will be harder to pay off.
You want to stay away from both late fees and over the limit fees. Both of these are expensive fees and exceeding your limit can put a blemish on your credit report.Watch this carefully and don’t go more than your credit.
Don’t make a written record of your pin or pin number. You have to take the number so that others can’t access your account.
Don’t think that interest rates they offer you are written in stone and cannot be changed. Card companies use different interest rates for competition purposes. You can contact the band and request a lower interest rate, if you think it is too high.
Before using a credit card to buy something online, check to verify that the seller is legitimate. Call the contact numbers on the website to ensure they are working, and never buy from a store that has no street address listed.
Credit Score
A smart move for all card users is to get free credit reports annually and check them for accuracy. Ensure that your credit report and annual statements match up.
Keep yourself updated on your credit score. Most credit card issuers consider 700 as the lowest number you can have while still being considered to have good credit score. Use your credit properly to maintain this level, or if you are not there, use this method to reach this level. Once you have a credit score of around 700 or more, you will get all the best offers of credit with the lowest interest rates.
You receive yet another piece of unsolicited “junk mail” urging you to apply for a shiny new credit card offer in the mail. There are times where you’re in need of a new credit card, but more frequently it is unwelcome. Always shred any credit card mail that you plan on throwing away.
If you have had a secured card that has stayed in good standing for awhile, a company may be willing to offer you a credit card that is unsecured. Also, you may receive offers in the mail. At this point you will have to start to make decisions as to what cards you would like to sign up for.
Some have the mistaken idea that having no bank cards so it will look like they can do for their credit. It is important to have one card to build credit. Use the card for a few purchases that you can afford to pay it off quickly. If you have no credit history, lenders are not able to ascertain if you are good at debt management or not.
Avoid prepaid cards when you are looking to get a secured card. These are considered debit cards and don’t report to the credit bureaus. A lot of them charge additional fees and are basically no more than checking account. Put down a deposit instead, improving your score.
Be watchful of your card transactions. You could register for mobile alerts if they are offered to you. By doing this, you can immediately question any irregular activity that occurs. Any suspicious activity on your account should be reported to your bank, as well as to the police if necessary.
As was stated in the beginning of this article, bank cards can benefit individual’s as they work to build their credit and take charge of their money. It is important to know how cards work, so consumers can make wise decisions. Having a grasp of credit card basics can benefit consumers in that way, helping them to make smart credit decisions.