Learn How To Use Credit Cards Safely

| August 22, 2013 | 0 Comments

Consumers need to be informed about how to take care of their financial future and understand the positives and negatives of having credit. Bank cards can either be an excellent tool for building your financial life or a huge liability that can wreak havoc on your finances. Read on to gain some knowledge on how to use your card responsibly.

Read the small print. If you receive a pre-approved card offer, make sure you understand the full picture. Be aware of what the interest rate on your card is and how long it will last. You must also be sure to learn about grace periods and any fees that may be applied.

TIP! Many people wonder if it is better to have one credit card or many. For most people, it is best to have two or three credit cards open.

In order to maintain a high credit card, ensure you are paying off your card payment on the day that it’s due. Paying your bill late can cost you both in the form of late fees and in the form of a reduced credit score. If you set up an auto-pay schedule with your bank or card lender, you will save yourself money and time.

To help ensure you do not over pay for a premium credit card, double check whether the card has an annual fee attached to it. Platinum and black cars charge very high fees normally, that can range from one hundred dollars all the way up to one thousand dollars. More exclusive cards have higher fees. If you do not require a card like this, choose a card with lower or no fees.

Fees from going over the limit want to be avoided, just as late fees should be avoided. Both are high fees and going over your limit will also damage your credit score. Track your spending carefully so that you don’t go over your limit.

TIP! Make sure you know your card’s interest rate. Before signing up for any card, knowing the interest rate is crucial.

Whenever you can manage it, you should pay the full balance on your credit cards every month. If you pay in full now before the interest starts piling up, you can save a lot of money. The credit usage builds a good history and by not carrying a balance, you will not pay finance fees.

Always read correspondence regarding your bank cards right when it arrives. Credit card companies can make changes to your annual membership fees and things like your interest rates but they have to send you a letter explaining what they have changed. If you object to said changes, you are always able to cancel your card.

Be sure not to leave any any portions blank when you sign a receipt at a store or restaurant. If there is a blank for a tip, cross it out so that a tip cannot be written in after you’ve signed. To ensure that no one has been adding any false amounts, stay on top of your monthly statements, making sure they match your receipts.

TIP! Check over your agreement, and make sure you understand all the terms before using your credit card. The majority of card issuers see the initial purchase as your acceptance of a card’s terms.

Never write down your password or pin number, for any reason. The safest place for this information is in your memory, where nobody else can access it. If you write down a PIN or password, especially if you put it in your wallet with your card, anyone can access it.

Be certain you are buying from a legitimate vendor before you use a credit card to buy anything on the internet. Try calling the listed phone numbers to ensure the company is in business and always avoid purchases from companies that do not have a physical address listed.

Monitor your credit score. Many credit card companies look at a score of 700 to be good. Put your credit to work to maintain that score or to help you reach it. Once your score hits 700 or above, you will get all the best offers of credit with the lowest interest rates.

TIP! Read emails and letters from your credit card company upon receipt. Credit card lenders can, and often will, make changes to their terms but they must inform consumers of these changes in writing.

Try to avoid paying for grocery and restaurant bills on a credit card because they sometimes take a long time to show up on your statement and you will underestimate your available balance. That may cause you to spend greater sums of money, because you had the impression that more credit was available to you.

Credit Card

Never give anyone credit card numbers on the Internet or on the phone unless you know and trust the company. If you are receiving an unsolicited offer that is requesting a credit card number, be doubly suspicious. Many scammers exist who want your card number. Be smart and protect yourself against them.

TIP! Make sure the password and pin number of your credit card is difficult for anyone to guess. It is a huge mistake to use something like your middle name, date of birth or the names of your children because this is information that anyone could find out.

When you use more than one credit card to pay for purchases, you should try to focus on one card and pay it every month. Even if you’re carrying lots of debt on some cards, maintaining one card that is well managed is good for your credit score.

Credit Card

If you have a secured credit card, sometimes the company is willing to offer you an unsecured credit card after you have proved your good standing. If you’re a loyal customer who pays on time, the company may start mailing you unsecured applications. Re-evaluate your situation before deciding on which card you will accept.

TIP! Never make purchases with your credit card, that you cannot afford. You might want a flat-screen television, but that doesn’t mean that you should use your credit card to buy it.

As said in the beginning, the ups and downs of the financial world can be confusing to consumers. You can find the best ways for using charge cards above and with any luck, you can apply this to your financial situation.

Tags: , , , ,

Category: Finance

Leave a Reply

Your email address will not be published. Required fields are marked *