Bank cards are usually associated with high interest rates and too much danger when using them to spend. However, charge cards offer peace of mind, they could offer great benefits, convenience and even rewards and perks. Read the following tips and techniques to learn how to properly utilize charge cards in a positive manner.
Odds are you’re well aware that late fees can be killer, but keep in mind that fees for going over your limit can also be quite harsh. Both are expensive fees and exceeding your limit can also hurt your credit score. Track your spending carefully so that you don’t go over your limit.
Lots of cards will offer bonuses simply for signing up.
Always make sure there is not a yearly fee before accepting an exclusive credit card that offers rewards or perks. Annual fees for black or platinum cards can range from $100 to $1000 depending on how exclusive they are. If you can’t benefit from a premium card, keep this in mind and avoid the fees.
Create a budget plan that you are able to follow. You do not need to spend the entire limit on your card, even though it’s available. It is important to stay within your budget and do not charge more than you can pay when the bill comes due.
You surely wish to steer clear of late charges as well as over the limit fees. Both are pretty large fees and exceeding your limit can also hurt your credit report. Watch this carefully and don’t go more than your credit limit.
Charge Cards
Do not use public computers to make purchases with a credit card. Your information may be stored and retrieved from computers in coffee shops, the library, etc. Putting your credit information on these computers is just asking for trouble. Don’t make purchases from another person’s computer.
Set a spending limit on your charge cards. You should have a budget for your income, so just include your charge cards in your existing budget. You should not think of a credit card as extra money. Set a particular amount you can safely charge to your credit card every month. Stick with it and be sure to pay it every month.
Be sure to read the fine print on a credit card as carefully as possible prior to using it. The agreement may have fine print, you still need to read it all.
Be careful about making online purchases with your credit card. Prior to entering any credit card info, make sure that the website is secure. Secure sites protect your card information from being stolen. Be very careful when replying to any emails you receive that ask for personal information: you should call the company or go to their website and do not reply to those emails.
Never leave blank on your credit card receipt when you make a purchase. If there is a tip line and you are not charging your gratuity, put a mark through that space to avoid someone adding an amount there. Make sure your statement matches the purchases you make.
Do not close too many credit accounts.It may be the initial reaction when you want to preserve the score of your credit, but it can actually make things worse. When you close an account, you are taking away from your actual credit amount, and this could make your current lending ratio percentage higher.
If you’re not pleased with the interest rate, ask your bank to change it. If, after you have talked with their retention team, they won’t do this, then you should start shopping around and find a company that offers better interest rates. When you find one, try to switch over to that company right away.
If this happens then it can make it hard to rent an apartment, it could make it hard for you to rent an apartment, get insured, finance a car or even get a job.
Only carry around the credit card that you need that day. You may have five or more cards, but you should only carry the ones you use regularly. These cards typically include a gas card and daily charge cards. Keep these on you and have the others at home.
Make sure that you are honest about your income when applying for a bank credit card. Some companies do not verify your income and they will give you a card with a higher limit, which may result in you charging more than you can afford to pay back.
As you can see from the above tips and techniques, charge cards offer a myriad of benefits. From the peace of mind of having some flexibility and emergency space, to the possibility of racking up perks and rewards, the credit 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 bank cards.