There are people who are frightened of the very idea of charge cards. Replace fear with a commitment to succeed with bank cards. They can be very helpful when a person needs to make a large purchase, or prefers not to carry or use cash. Read on to find tips and advice for using your bank cards in an educated and beneficial way.
You must make a habit of paying credit card bills in a timely fashion. You always have to pay off your credit card balance by a certain date. If you fail to make a payment by this date, you will be charged large fees by your credit card company. You may also have to pay more interest on future purchases if you engage in this behavior.
You should limit your search for new cards to those that don’t have annual fees and that offer low interest rates. It wastes money to have to pay annual fees when there are lots of credit card companies that don’t charge these fees.
Leave no blanks spaces on any credit card receipts you sign at a store. This includes putting lines or crosses on tip lines or other blank areas. You must also review statements regularly to verify the accuracy of charges to your account.
Do not write down passwords or PINs related to your credit card–ever. It is critical that you can recall your password, so you remain the only person with access to it. Writing down your password or pin number, and keeping it with your credit card, will allow anyone to access your account if they choose to.
Everyone has had this experience. Some annoying solicitation arrives in the mail, requesting that you sign up for their company’s credit card. Depending on the time frame, you may or may not be in the market. When you’re tossing out the mail you should tear it up first. Why? Your delicate personal information is contained on these solicitations, and a thief can easily damage your credit by stealing your identity.
Keep a list of credit account numbers and emergency contact numbers for the card lender. Put this list in a safe place, like a deposit box at your bank, where it is away from your cards. This list will help you make quick contact with lenders if you ever misplace your credit card or if you get mugged.
Never believe that a credit card’s interest rate is fixed. Credit card issuers have several interest rates they can use at their discretion. Call your bank if you don’t like your current interest rate. Ask the bank to change your rate.
If your interest rate is too high, talk to your bank about changing it. You may need to look for a card with a better rate if your bank won’t cooperate with your request. After you locate a company that offers a rate you like, open an account with them and transfer your balance over to it.
You should generally avoid using your credit card for grocery purchases and restaurant bills. The reason for this is that these transactions tend to take a significant amount of time before appearing on your statement. This may result in you spending too much money when you see an artificially low balance.
Negotiate for a better interest rate. Many times you can call the company and request a lower rate. You have a good chance receiving a lower APR if you have been making your payments in a timely manner.
If you close a credit card, cut up or shred your card, too. If you do not dispose of it, you may find it falling into the wrong hands, which could lead to someone reopening this account and running up a huge debt.
Don’t carry more credit cards than you need. Although you may have several cards, think of which cards you will need to carry. These cards usually include a gas card and one major credit card. Keep only these with you; leave the others at home.
If the APR on your credit card is very high and you have excellent credit, you can call your creditor and request a lower rate. Sometimes, they will do just that. That can save you money each month you carry a balance.
Make sure to carefully read the fine print before signing up for a secured bank cards. Many times the money you deposit is charged with excessive fees, which may lower your credit limit.
Don’t use rewards cards exclusively and forget about your debit card. If you charge everything to one card in the pursuit of free plane tickets, you might get them. However, you may accrue interest rates and fees that are the equivalent of several flights.
Make credit card payments on a timely basis each month. Some credit card companies impose penalty interest rates if you miss your payment due date even once. Additionally, credit card issuers will report you late to the credit bureaus, which can significantly impact your credit score. Consider setting up your account so that payments are automatically deducted from your checking account to make late payments impossible.
The advice you have read here can help even the most credit-shy consumer conquer their fears. Credit cards can be extremely useful if you use them properly and understand how to use them without fear. Keep the advice you have learned here in mind, and use your credit card with confidence.