While cash is not going away anytime soon, having a bit of plastic is all but necessary in today’s society. Banks continue to increase all of their account fees, so more and more people are moving to credit. Keep reading to determine how credit cards can work for you.
Only inquire about opening a retail credit card if you are serious about shopping at the store regularly. When retail stores put in an inquiry on your credit to qualify you for a card, it gets recorded on your credit report whether you open the card or not. Too many inquiries into your credit history will be a red flag to possible lenders and will lower your overall credit score.
To keep your credit score high, make sure to pay your credit card payment by the date it is due. A payment that you make too late, will lower your credit score, while costing you a lot of money. You can avoid being late by putting your credit card payments on an automatic schedule.
Understand your interest rate. It is extremely important before you sign on to getting that credit card that you must know the interest rate. You may end up paying a lot more than you planned on if you are unaware of what you are being charged. You may find it very hard to pay off your debt each month when high interest charges are added to your balance.
You surely wish to steer clear of late charges as well as over limit fees. Both are costly, but you will pay not only the fees tied to these mistakes, but your credit score will dip as well. Track your spending carefully so that you don’t go over your limit.
Make sure to keep a budget when you are using bank cards. You should already be budgeting your income, so just include your credit cards in your existing budget. Never look at a credit card as more money. Figure out a set amount that you’re comfortable with setting aside to make payments on your charge cards every month. Never go above that amount and make sure to pay it in full every month.
Pay close attention to your credit balance. Be aware of what your limit is so that you never exceed it. If for some reason you exceed your limit, you will be liable for large fees that you might not know about. Try contacting your credit card company for an increased limit if you consistently go over your current limit.
Never use a password or pin code for your credit card that is really easy for people to figure out. Don’t use something obvious, like your birthday or your pet’s name, because that is information anyone could know.
Watch out for changes to the terms and conditions on your cards. Companies often come out with new terms and conditions, even more frequently than in the past. Often, there will be changes buried in the small print. Every time you receive a statement, read every single word of the language; the same goes for your initial contract and every other piece of literature received from the company.
When making purchases on the Internet, retain one copy of your credit card receipt. Keep the receipt until your bill comes in and verify all charges. If they didn’t, call the company and immediately file a dispute. Having the receipt on hand will make any disputes much easier to resolve.
Never give your credit card information out over the phone. Scammers commonly use this method for getting your number. Give out your number only if you are the one who made the call. Never give your numbers to people who may call you on the phone. You never know who is really on the other end of that line.
Experts recommend that the limits on your credit cards shouldn’t be any more than 75% of what your monthly salary is. Also, you should never allow yourself to have a limit that exceeds your monthly salary. If you do, pay that card off and ask for a limit reduction. Your interest will quickly become unpayable.
A multitude of consumers have elected to go with credit cards over debit cards because of the fees that banks are tying to debit cards. With all the expansion and growth in this regard, it is possible for you to take advantage of all that credit cards can offer. Make use of charge cards in a responsible way by keeping this article’s advice in mind.