Credit cards have the power to cause financial ruin, but they don’t have to. However, when used properly, charge cards provide many benefits, such as financial peace of mind, while also offering the chance to earn rewards and perks. Continue reading to learn the many benefits of bank cards, as well as how to avoid their many pitfalls.
Avoid using credit cards to buy something that is more than you would ever dream of affording with cash. Though you may want to use a card to make a purchase that you are certain you can repay down the road, it is not smart to buy something that you clearly cannot easily afford.
If you want a credit score that is good, be sure that you’re able to pay credit card payments before it’s due. If you don’t do this, you could incur costly fees and harm your credit score. One of the best ways to save you both time and money is to set up automatic payments.
Check over your agreement, and make sure you understand all the terms before using your credit card. Most credit card companies consider the first use of your credit card to represent acceptance of the terms of the agreement. You should literally read the fine print.
When looking for a new card, find one that has low interest and fees. With so many cards out there that don’t require an annual fee, getting one with an annual fee is simply a waste of money.
Be careful if you buy things online with your credit card. Only give out your confidential credit card information to businesses you trust and who have secure websites. When a website is secure, your card’s information is as well. Also, ignore emails that ask for credit card information, these are attempt to get your information.
Always know who you are dealing with and make sure they are legitimate companies when you give out your credit card information online. You should contact whoever runs the site on the phone prior to ordering and don’t use a company that has no real address on their website.
Stay aware of your credit score. Having a credit score that’s about 700 is what a lot of companies consider the limit for good credit. Put your credit to work to maintain that score or to help you reach it. If you can accomplish getting a score of seven hundred or more, you will get better rates on loans and credit cards.
We all know what it’s like. These solicitations often arrive in your mailbox offering you a credit card with their company. You may be looking for a new one, but you might not be. Shred this mail before throwing it away. These solicitations often contain sensitive personal information, so it is a mistake to toss them away without ripping them up.
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. This list should be kept in a safe location away from your bank cards. The list is useful as a way to quickly contact lenders in case of a lost or stolen card.
Do not close too many credit accounts at once. Open accounts always help a credit score while closed accounts can end up hurting it. The reason is because the amount of available credit you have is lowered and that will be balanced against what you owe.
Make sure to look over credit card statements very carefully. In addition to unexpected account changes or charges you don’t remember making, check to make sure that all of the charges listed are for the correct amounts. Talk with your company about the problem immediately. This can stop you from paying more than you really owe and it is possible that it might help your credit score.
If you hold several cards, it makes sense to primarily use just one and repay its balance monthly. Paying in full on an active credit card will have a positive impact on your credit rating, even if you have other cards that are carrying hefty balances.
Any charge cards that you have that you do not use, should be closed. You are making yourself a likely victim of fraud if you choose to keep them open. You may be charged yearly fees that would simply be a waste.
Charge cards can provide many benefits when used in a smart way. From knowing you’re able to pay for emergencies to getting a lot of rewards and perks, charge cards are hopefully a little less scary for you to think about now. Apply what you’ve learned here to succeed with bank cards.