Credit cards have the advantage of allowing people to buy items without having the full amount of the price. Before you get a new credit card, you need to be aware of the basics that could help you from having a lot of debts. You can pick up some handy credit card advice from the article below.
Do not apply for a new credit card before understanding all the fees and costs associated with its use, regardless of the bonuses it may provide. Read the terms carefully, however; you may have to meet extremely specific criteria in order to get the signing bonus. Typically, you are required to charge a certain amount on the card in a limited time period to get the bonus.
If you see a charge on your card that isn’t yours, talk to your credit card issuer immediately. When you do that, you will give the credit company a good chance of making sure the thief is caught. This will also prevent you from becoming responsible for too many unauthorized charges. The minute you notice a charge that could be fraud, an email or phone call to the credit card provider can commence the dispute process.
Minimum payments are designed to maximize the credit card company’s profit off of your debt in the long run. This is why you should always pay some amount over the minimum due. Over time, this will help you to avoid paying so much out in interest.
Retail Store
Set a fixed budget you can stick with. Remember, your credit card’s credit limit is not a target to aim for. Only spend what you can afford so that you can pay the bill off at the end of the month.
Do not consider using a credit card from a retail store unless you shop there regularly. When a retail store inquires about your credit prior to opening an account, that inquiry is recorded on your report whether you go through with opening a card or not. Repeated applications for credit could negatively affect your overall credit score.
Be sure that you fully understand the terms of the credit card prior to signing up for it. It is especially important to read the details about what happens to rates and fees after any introductory period. Read each word in the fine print so that you completely understand their policy.
You have to sign the back of your credit cards as soon as you get them. A lot of people don’t remember to do that and when they are stolen the cashier isn’t aware when someone else tries to buy something. Lots of merchants make the cashier verify that the signature matches in order to ensure your card is safe.
Make sure to sign your cards as soon as your receive them. A lot of places need a signature so they can match it to your card, which makes it safer to buy things.
Avoid using public computers for any credit card purchases. Your card information will be on these computers, such as the ones in the public library or in coffee shops. Inputting your credit card information on these computers is asking for trouble. Whenever you make a purchase, do so on your computer.
Whenever you sign a credit card slip in any store, fill in all the spaces. Mark up the line for the tip, so that no one can later put an amount on it. Carefully check your statements to assure your purchases match the amount on your statement.
Do not allow anyone to use your cards. Even if it’s a good friend that needs something badly, it’s not smart just to lend a card out. If they were to charge more to your card than you agreed to, for instance, the friendship could be damaged forever.
You should never jot down your password or pin number, regardless of the circumstances. You need to just remember what your password is so no one else can steal or use it. Writing your pin down and placing it in a similar area where you place your card is not a good thing to do.
Card Companies
Keep a list of the “lost/stolen card” phone numbers for each of your credit card issuers along with your credit card number for reference. File this list in a safe place with other important papers. You’ll be grateful for this list in the event that your cards get lost or stolen.
Check with card companies about whether they’re willing to reduce their rates. Some credit card companies will reduce the interest rates for customers that have consistently maintained a positive relationship by making timely payments. There is no fee to ask, and if it works, you will be saving a lot of money.
It is highly recommended that your credit card limits remain less than 75% of the total money you make every month. If your balance is more than you earn in a month, try to pay it off as quickly as you can. This becomes critical because the interest charges will continue to push your balances higher and higher.
It is very important when you get a credit card to keep the account open as long as you can. Frequent switches to new companies is not wise unless you find it absolutely necessary. The amount of time that your account has been open will have an impact on your credit score. Part of building credit is keeping accounts open if possible.
If you want a secure card, dismiss the idea of getting one that is prepaid. In reality, they are debit cards and don’t send reports to credit bureaus that might help improve your record. In addition, a number of them also charge additional fees, and they are really only another checking account. Place a deposit, and try to get a secured card that will help you improve your credit.
Avoid using your credit card to pay for meals at restaurants, as the charges sometimes take a while to appear on your credit card statement, so you could underestimate your available credit. Because you will think your balance is lower than it really is, you could end up spending more.
Periodically, you should contact the company that issued your credit card and ask them about a reduction on your interest rates. Some companies are willing to lower interest rates if the customer has had a positive credit history with them. It does not cost anything to ask and can save to a lot of money in the end.
Stay away from cards that have annual fees. Typically, cards without annual fees are available to those with solid credit histories. Most often, such fees counteract the perks a card may have. Think about it. Credit companies do not make annual feels blatantly obvious; you have to scour the fine print for them. It is time to pull out your favorite pair of glasses. Make sure the cost and fees are not more expensive than the perks. Often, they do not.
When you open a credit card account, try to keep your account open for as long as possible. You do not want to switch to different accounts unless it is absolutely necessary. A longer history on an account will benefit your credit score. Another element to establishing credit is to maintain and keep you credit accounts open and active at all times.
As a parent, it’s up to you to ensure that your children are financially responsible enough to handle a credit card before they receive one. We all know that it’s hard to tell your kids no for anything, but when it comes to credit, they’re dealing with lifelong consequences. If children are not ready to repay their debts, then having a card should be out of the question.
If you rack up more credit card debt than you can afford to repay, you may damage your credit score. This can make it difficult for you to do things like finance a car or rent an apartment in the future. You can find it hard to even find a job or insurance at times.
Always follow your credit score and credit report in order to see your accounts’ health. It’s also good to see how other people manage their credit. Be sure to take note of any errors that show up on your report. If you find an error, contact your creditor as well as the credit bureau.
Never lie about how much money you make just so you can apply for a card with an extremely high limit. Many companies don’t check your actual income, so your limit may be way too high.
Credit Card
If you decide to close a credit card account, properly dispose of your card. Not doing so might mean that the card ends up in the wrong hands, putting you at risk of fraud. This is a good way to destroy your credit and make it impossible to get loans in the future.
Report a lost or stolen credit card to the credit card company as soon as you notice it is missing. If a card is stolen and used before it is reported missing, you could be held responsible for any charges made. You aren’t liable for any unauthorized charges made after you report your credit card lost or stolen.
If you don’t want to lose a card, use it. Many creditors close accounts that remain inactive for too long. The best way to prevent this is to use all your cards regularly, at least the ones you most want to keep long-term. Don’t forget to make payments in full so that you can avoid being in debt.
It is smart to contact your credit company before using the card for something out of the ordinary. For example, if you’ll be using your card abroad or making an extremely large purchase, it’s smart to let them know about it in advance. This helps keep the credit card company from flagging your card for unusual activity, and disabling it right when you need it most.
If you have lost your credit card, or believe it to be stolen, report that card to the issuer immediately. If a card is stolen and used before it is reported missing, you could be held responsible for any charges made. As soon as you report your card missing to your credit card provider, they can no longer ask you to pay for any unauthorized charges.
Consider paying off one credit card with a different credit card that has lower fees and lower interest rates. Even if interest rates are similar, other cards might give perks or points towards airline tickets. It is important however, that you do the appropriate accounting first.
If you missed a payment and have now been assessed higher interest rates or penalty fees by your card issuer, request that they be removed or reduced. If you have been late with a payment, a credit company is likely to add extra fees and raise interest rates. You can reduce these charges if you contact your card company.
Credit cards can help you, if you understand how to use them wisely. The tips in the preceding article will give you lots of useful incineration so you learn how to use a credit card responsibly.
If you are planning on traveling out the country, contact your credit card company before you leave on your trip. Many cards are country specific and will not work abroad, or even worse, be blocked. If the company is aware of where you’re going, you can avoid these issues.