Tips For Reading A Credit Card Statement
Using charge cards wisely can help you accumulate points that can be used on incentives like vacations. It can also relieve any stress you may have. Other people who don’t use their cards wisely charge their vacation expenses to their bank cards and come home having a stressful bill. Keep reading to learn how you can be smart and get the most from the use of your charge cards.
Check whether there is an annual fee attached to your credit card, to make sure you aren’t overpaying for a premium card. If you are the owner of a platinum card, or a black card, the annual fees can be up to $1000. If you can’t benefit from a premium card, find a card with no annual fee and don’t waste your money on the premium card’s steep annual fees.
Pay close attention to your credit balance. Be sure you know your card’s limit before making purchases. If you happen to charge an amount over your limit, you will face fees that are quite costly. It is going to take longer to pay down the balance if you keep exceeding your limit.
If you are looking to open a credit card though you do not have any type of established credit, finding someone to co-sign for you can do the trick. A parent or other relative may be willing to be a co-signer. This person needs to be willing to agree to paying the balance if you don’t make the payments. This is the perfect way to obtain your first card and start to build positive credit.
It may not be in your best interest to get your first credit card the moment you become old enough to do so. Most people do this, but your should take a few months first to understand the credit industry before you apply for credit. Try to experience a few other things in life before jumping into the lending and borrowing arena.
If you wish to get a credit card that has great rates and benefits, keep an eye on your credit score. Credit card companies generally use your credit score when issuing benefits with their charge cards. In order to get accepted for credit cards that have low interest rates, lucrative reward schemes and low fees, you need to have a stellar credit score.
Select a password for your card that’s tough to identify for someone else. Using your birth date, middle name or your child’s name can be problematic, as it is not difficult for others to find out that information.
Never rely on credit to buy purchases that you cannot afford. If you want a big ticket item you should not necessarily put that purchase on your credit card. You will end up paying a lot of money in interest charges, and the amount you need to pay every month might be too much for you. Leave before buying anything, think it through and then return if you want to buy it. If you still decide to purchase it, the store’s financing usually gives low interest rates.
Don’t write your pin or password down where others can see it. It is critical that you can recall your password, so you remain the only person with access to it. Recording the pin number, and keeping it where you keep your credit card, will provide any person with access if they desire.
Never give your card number out over the phone. Many dishonest people use this ploy to get credit card information from unsuspecting people. Only allow those that you trust to have your credit card number. Never give your credit information to someone that has called you. Although someone may say they are from a certain company, there is honestly no way to tell if they are being truthful.
Even a straightforward credit card with no reward system attached can be beneficial to you, provided it is used right. Those who do not mindfully use their cards wisely with some of the sound strategies presented here might have momentary gratification, but also long term stress from bills. Try to use what you learned to keep your credit under control.