Let’s be honest, in today’s society, people can use all the education possible on how to manage charge cards responsibly. Credit cards can be of great service to people, but they can also put you in really hot water in terms of debt! Continue reading for some great credit card tips.
Do not close any credit card accounts without finding out how it affects your credit report. There are things that can happen that negatively affect your credit score when you close a credit card account. In addition, it’s good to keep the charge cards associated with your credit history active and in good standing.
If you notice a fraudulent charge on your credit card, report it immediately. If you do this, your credit card company will have a good chance of tracking down the thief. This also helps absolve you of responsibility when it comes to the charges. Fraudulent charges could be reported through a phone call or through email to your card provider.
These days, many credit card companies offer large incentives for using their card. Make certain you completely understand fine print in the terms and conditions though, because a lot of the credit card companies have very particular terms for you to qualify for before you get the bonus. For instance, it could be listed in your contract that you can only receive a bonus if you spend X amount of money every period. If this is something you’re not comfortable with, you need to know before you enter a contract.
If you’re able to, always pay your credit card debt off in full every month. Really, credit cards should be used for convenience, and the bills should be paid on time and in full. Making use of credit does help build your credit, and repaying balances in full allows you to avoid interest charges.
Many charge cards come with rewards or loyalty accounts. Look for a useful loyalty program if you use credit cards regularly. This can provide you with extra income, airfare, or other rewards, if you use the card wisely.
Always read correspondence regarding your credit cards right when it arrives. Written notice is all that is required of credit card companies before they change your fees or interest rates. If you are not in agreement, you have the freedom to cancel your card.
No matter how tempting, never loan anyone your credit card. Even if it is a great friend of yours, that should still be avoided. There are other ways to help a friend or family member in need other than allowing them to borrow your card.
Never give the number of your credit card out when you receive a telephone call asking you for it. Scammers commonly use this method for getting your number. Make it a point to only give your credit account number to trusted businesses when you have originated the call. Don’t give them to individuals who call you. Credit card thieves will say anything to get you to believe their story, and they are very good at it.
Most experts agree that the maximum limit on your credit card should not exceed 75% of your monthly salary. If your balances exceed one month’s pay, try to repay them as quickly as possible. The interest on that will soon be way over your head.
If you owe more money on your card that you could pay back, you are risking damaging your credit score. Damaging your credit can make it difficult to get insurance, finance a car, rent an apartment or even get a job.
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 credit issuers never verify income, and this could result in you spending more than you’ll be able to pay back because they gave you a high credit limit.
After having used your secured credit card responsibly over a period of time, you may be able to switch to one that is unsecured. You will probably also getting other offers in your mailbox. This means it is time for you to re-evaluate your financial situation and make some good decisions about how to employ credit in the future.
If you close a credit card, cut up or shred your card, too. If you choose to put it in a drawer, the card could find itself in another person’s hands, and he or she could use your information to open up your account and charge lots of debt that is in your name.
If you have charge cards that are sitting unused in your sock drawer, you should close them. Having open lines of credit that are unused increases your risk of identity theft. Some cards charge annual fees, and you’ll still be liable for those even though you aren’t using the card.
Be certain to understand the terms of any secured card before accepting an offer. Many times, you are told that you have to deposit a very small amount, but you are not made aware that most of that money might be sucked up by fees, which will end up with you having a much lower credit limit.
There are a lot of financial pitfalls waiting out there for the unwary consumer; punitively high interest charged on credit card debt is certainly one of them! You can find the best ways for using credit cards above and with any luck, you can apply this to your financial situation.