The article below discusses some of the best ways to use charge cards properly so you don’t have any trouble with them.
Learn how closing a line of credit will affect you prior to closing it. Many times it leads to lowering your credit score which you do not want. Choose to keep the accounts that you have had open the longest that make up your credit history.
Do not close any credit card accounts without finding out how it affects your credit score.
This allows the credit card issuer the best opportunity to catch the person responsible. This will also limit the best way to make sure that you are not held responsible for their charges. You can usually report the majority of fraudulent activity through a quick telephone call to your credit company.
Plan a budget you will have problem following. Just because you have a limit on your credit card that the company has given you does not mean that you have to max it out. Be aware of what you are capable of paying and stay within that limit for healthier finances and to avoid high interest payments.
You can save a lot of trouble by putting your credit card payments on an automatic payments.
Interest Rate
If you are purchasing something at a retail location with a credit card, make sure that you never leave any spaces on the receipt blank. If there is a tip line and you are not charging your gratuity, mark a line across the area to ensure nobody adds in an unauthorized amount. Additionally, it’s a good idea to verify the information from all receipts with your monthly statement.
Understand your interest rate will be. You must understand the interest rate before you agree to accept a credit card.
Pay 100% of your whole card balance every month if you can afford it. In an ideal situation, you shouldn’t carry a balance on your credit card, but repaid fully before a new cycle starts.
If your credit is damaged, consider applying for a secured credit card. These cards require some kind of balance to be used as collateral. What these cards let you do is borrow money from yourself and you will pay interest to do so. This is not the ideal situation, but it can help some individuals to rebuild their credit score. Only apply for a secured credit card from a well-known, reputable company. Down the road, you may even be able to switch to an unsecured (regular) credit card.
If you are having any financial problems, be sure to inform the credit card company. If you’re going to miss a payment, they may be able to adjust your payment plan and waive any late payment fees. This might prevent them from reporting any late payments to the credit agencies.
Use your bank cards intelligently. Limit spending and just buy things on your credit card that are affordable to you. If you use your card for more than you can afford, your debt will grow and the total balance will be harder to pay off.
When you are looking for secured cards to improve your credit standing, avoid prepaid cards. These are not actually reported to the big credit bureaus and are really just debit cards in disguise. Lots of these cards charge extra fees too, and they are nothing more than a checking account really. Lay down a deposit, and get a real secured credit card that will report to the bureaus and help improve your credit score.
Fine Print
Be sure you go over the fine print on a credit card account before using it.The agreement may have fine print, but it’s well worth the time and effort to read the agreement and understand it completely.
Do not lie about the amount of money that you make in order to apply for a credit card that has a much higher limit. Some companies don’t bother to check income and they grant large limits, which may be something you cannot afford.
Watch out for changes to the terms and conditions on your credit card accounts carefully. It is not uncommon for companies to change credit terms and conditions with relative frequency. Make certain you read everything so that you know how they may impact your finances.
Never leave a blank space when you sign retail store receipts. If there is a blank for a tip, put a mark through that space to avoid someone adding an amount there. Make sure your statement matches the purchases you make.
Read the agreement carefully before getting a secured credit card. Many times the money you deposit is charged with excessive fees, which may lower your credit limit.
Again, it’s very easy to get yourself into trouble with your credit card use. All it takes is too many cards and/or too many costly purchases, and you will find yourself in hot water. The advice you have read here can help you avoid these problems and keep your credit history healthy.