Credit cards can be considered both good and bad. However, properly used, credit cards can offer benefits like peace of mind, conveniences and even perks and rewards. If you want to know a little bit more about how to go about having a credit card in the right way, keep on reading!
A way to make sure you are not paying too much for certain types of cards, be sure that they do not come with high annual fees. The annual fee for a platinum or black card could cost from $100, all the way up to $1,000, depending on how exclusive the card is. Avoid paying these fees by refraining from signing up for exclusive credit cards if you don’t really need them.
If you run into financial difficulty, let your credit card company know. Oftentimes, the credit card company might work with you to set up a new agreement to help you make a payment under new terms. This will also help prevent negative reporting to credit bureaus.
Get into the habit of paying your credit cards billing on a timely basis. You may have to pay large fees if you ignore the due date on your credit card statement. Also, the majority of card companies will increase your rate, which means all future purchases cost you more money.
Never keep a written record of your pin number or password. It is vital that you know your password, and that you’re the only one who has access related to it. If you write down these passwords or pins, you could potentially give someone who you do not want to have access to your accounts an open door to them.
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 credit cards. Such a list is helpful when you need to quickly get in touch with lenders in the event your cards are lost or stolen.
Do not close active credit accounts. It may be the initial reaction when you want to preserve the score of your credit, but it will actually have the opposite effect by making your score worse. This is due to the fact that you subtract from the gross credit that you have, which lowers your ratio.
Discuss lowering your interest rates with the credit card companies you use. Some companies are willing to lower interest rates if the customer has had a positive credit history with them. A lower interest rate can save you a fortune in the long term and asking for a rate reduction does not cost you a penny.
If you can, do not use your credit card at the grocery store or a restaurant. They take longer to appear on a statement, and you may not know your real available balance. This often leads to increased spending as you have an incorrect perception of your real balance.
Make sure that you are aware of all the recent credit card law changes. Creditors are not allowed to raise rates retroactively. The companies are also not allowed to bill in a double-cycle. Research the relevant laws. The CARD Act, as well as the FCBA, are two important laws to know about.
Keep a running total of the monthly expenditures you charge to your credit cards. Remember that incidental and impulse purchases rack up quickly. If you spend without much consideration, you may find that you cannot repay the full balance when the bill arrives.
Only carry around the cards you need every day. Look over your cards and choose only those you use frequently. These can include a gas card and daily charge cards. Only place those in your wallet, and leave the rest safe and secure at home.
Always read find print before doing any kind of balance transfer. It is crucial that you fully understand what is going to happen upon the expiration of the introductory period. It is easy to suffer with high interest rates that have been overshadowed by great introductory offers. Just make sure you know exactly what you will be getting into before you sign up for an offer.
Be sure that your daughter or son can handle the responsibility of a credit card before you let them have one. It can be hard to say no to a child, but it’s better to deny them something that could cause them financial disaster if they are not ready.
When you have lost your credit card, contact the institution who provided the card right away. If a stolen card gets used prior to reporting it, you might be responsible in paying for the charges. When you report your credit card as missing, your card company can’t hold you accountable for any charges you did not make.
Designate only one credit card to use for online purchases in order to minimize any damage that could occur if your information is stolen. If you use several cards, you increase your exposure to potential fraudulent credit card activity.
When you’re traveling, try to have two bank cards on you. If you have cards from different banks, it gives you a safety net. If you run into trouble trying to use one of your cards, the same difficulties will likely turn up using another card issued by the same company. By having cards from different banks, you are more likely to have access to credit.
There are many great benefits to credit cards, when utilized properly. You can improve your quality of life by having funds available for emergencies or earning rewards. Use the advice in this piece in order to achieve real success.