Use Your Credit Cards The Right Way
Consumer advice is a commodity itself these days, especially when it comes to charge cards. This article offers some valuable education that can help anyone to make wise credit card selections, and use those cards in a manner that prevents problems. Too many people do not know what they are doing when it comes to charge cards and often find themselves in financial trouble.
Never use your credit card to buy something that is not in your budget. While it is fine to use them for items you may afford later, you should avoid using credit to purchase big ticket items that you are going to run into problems paying for.
Ensure you understand how closing an account will affect your credit score. Often, closing out a credit card accounts will adversely effect your credit rating. It is also important to keep your major credit accounts active so that you do not lose a big portion of the credit history that you have built up over the years.
Do not consider using a credit card from a retail store unless you shop there regularly. Whenever retail stores put inquiries on your own credit to see if you qualify for that card, it’s recorded on your report whether you get one or not. If you have many retail inquiries, your credit score may decrease.
Always pay credit payments before they are due. This increases your credit score. Paying late will hurt your score and incur extra fees. To save time and trouble, consider signing up for an automatic payment plan. This will ensure you never pay late.
Make it your goal to never pay late or over the limit fees. The fees are both high, and not only do they cost your wallet, but they also affect your credit score negatively. Keep an eye on your balance and exercise more caution as you approach your credit limit.
Be wise with your use of bank cards. Limit spending and only buy things on your credit card that are affordable to you. If you use the card for something, ensure you can pay it back immediately. If you carry balances, you are more likely to get caught in a cycle of debt that is difficult to escape.
If you are in the market for a bank issued credit card, look for one that offers a low interest rate. Also avoid paying annual fees. Choosing a card that has an annual fee attached is a waste of your money when there are numerous charge cards available without one.
Never, ever, under any circumstance lend out your credit card to someone. It could be your close friend, but it’s still a bad idea to give it to someone. You could be struck with expensive over-limit charges by your credit card provider if your friend accidentally overspends.
Keep an eye on your credit rating. Most creditors think of 700 as the lowest number you can have while still being considered to have good credit. Put your credit to work to maintain that score or to help you reach it. Once your score hits 700 or above, you will get all the best offers of credit with the lowest interest rates.
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. Put it in a secure location like a safe box at a bank, that is in a different place than your bank cards. The list will assist you in promptly notifying card lenders should you lose your cards or have them stolen.
Review the statements you receive from the credit card company very carefully. Try to find anything that doesn’t seem accurate and look for charges you may not have made. Always inform your issuer of problems as soon as possible. This will save you money and may prevent you from being improperly reported to the credit agencies.
Carefully consider all the fees associated with a particular card. The interest rate and APR are important, but be mindful of all the fees that come with a card. Sometimes there are charges like cash advance rates, service charges and application fees that would make the card not worth it.
Don’t ever fax other people a credit card number. A fax can be left in an office for a long time while anyone can get the card number. Anyone in their office might be a thief. Although many credit cards will cover the costs associated with fraudulent use, it can take time to resolve.
Close any credit accounts that you are not using anymore. When you leave the account open, it’s much more likely that you’ll wind up falling victim to identity theft. You may also be charged an annual fee by keeping accounts open.
In conclusion, getting in trouble with your credit cards is far too simple. Getting multiple cards or charging too much can get you into a great deal of trouble. It is hoped that the advice in this article can help prevent credit card issues for you and help you remain financially healthy.