Many people have used bank cards ever since they can remember. Like a lot of things, credit cards could be hard to manage if you do not have the right advice or knowledge. The following advice will teach you what you need to know to use bank cards properly.
To preserve a high credit score, pay all bills before the due date. Paying late can rack up expensive fees, and hurt your credit score. Setting up an automatic payment schedule with your credit card company or bank can save you time and money.
Know what interest rate your card has. It is extremely important before you sign on to getting that credit card that you must know the interest rate. Without a clear understanding of the interest charges, your bills could rise unexpectedly. If you end up paying more, it is possible that you will be unable to repay the balance every month.
You want to not only avoid late payment fees, but you also want to avoid the fees tied to going over the limit of your account. Both are costly, but you will pay not only the fees tied to these mistakes, but your credit score will dip as well. Watch carefully and don’t go more than your credit limit.
Many charge cards come with rewards or loyalty accounts. As long as you are in the habit of paying with a credit card, be sure to find a program which will reward you for using it. The extra cash back or free flights and hotel rooms can be great bonuses and money-savers.
The best credit cards come along with having great credit. Different credit cards are offered to those with different credit scores. Those cards with the lowest of rates and the opportunity to earn cash back are given only to those with first class credit scores.
Don’t use passwords and pins for your cards that can be simply figured out by someone else. You don’t want anyone who can go through your trash to easily figure out your code, so avoiding things like birthdays, middle names and your kids’ names is definitely wise.
Do not use bank cards to purchase things you could not afford. Just because you can use your card to get a new TV doesn’t mean you can afford it. You will pay loads of interest, and the monthly payments may be out of your reach. Exit the store and mull over your purchase for a couple of days before making your final decision. If it is still something you wish to purchase, check with the store, as their in-house financing may offer lower interest than your credit card.
When you make online purchases with your credit card, always print out a copy of the sales receipt. Keep such receipts until your bill arrives so that you can verify the accuracy of the amount charged. In the event of a discrepancy, call the credit card company and the retailer at your earliest possible convenience to dispute the charges. This can be an excellent method of assuring you don’t get overcharged for purchases.
Do not lend other people your credit card for any reason. Although you might be tempted to help out a good friend, lending out your bank cards is not a good idea. This can lead to overcharges and unauthorized spending.
If anyone calls and asks for your card number, tell them no. Scammers often do this. Only provide your number to the businesses that you fully trust and to the card company when you contact them. Never give any personal information to anyone who calls you. It doesn’t matter who they say they are. You never know who they may really be.
Most professionals say that limits on your credit cards should not be more than 75% of what your salary is every month. If your balances exceed one month’s pay, try to repay them as quickly as possible. That is simply due to the fact that you will end up paying an extremely large amount of interest.
A secured credit card may be an option you want to look into if your credit score is in trouble. Cards like these need a collateral. You basically borrow money from yourself, although you have to pay interest on the loan, too. This is not a perfect situation, but it can help rebuild damaged credit. Always using a known company for secured credit. They may offer you an unsecured card later, which will help your score even more.
If you use bank cards, stay on top of your credit standing by obtaining your credit report once a year so that you are reassured of the accuracy. Ensure that your credit report and annual statements match up.
Once you’ve closed your account, destroy your card and related information. Leaving an expired card or one for a closed account lying around exposes you to risk. If such cards wind up in the hands of someone unscrupulous, they provide all of the necessary information to reopen an account in your name and use your credit without authorization.
Before accepting a balance transfer read the contract fully. Have a true understanding of what occurs after the introductory period is complete. Many times, you will have a very high interest rate after the introductory period. Know what you’re getting into before you sign up.
If a credit card of yours is presumably stolen or lost, be sure to report the card to the credit card company right away. If thieves use your card before you call to report it as missing, you could be held liable for the charges. Once you have alerted your issuer to the fact that your card is missing, you cannot be required to pay unauthorized charges.
As stated previously, bank cards are a constant source of fear and frustration. But, armed with the right understanding, it can actually be quite simple to manage credit cards. Use the advice that was presented in the above article to assist you in managing your bank cards better.