How To Use Your Credit Cards Wisely

With all of the credit card horror stories out there, it is no wonder that some people are afraid of bank cards. Bank cards should not be feared. Charge cards are especially useful for buying expensive items or buying items online. Read on to find tips and advice for using your credit cards in an educated and beneficial way.

TIP! If you cannot afford to pay cash for something, think twice about charging it on your credit card. Take an honest look at your budget before your purchase to avoid buying something that is too expensive.

If an item truly costs more than you have to spend, don’t use a credit card to buy it. It’s fine to use bank cards to stretch out the payments for an item you can afford, but refrain from making a major purchase that you couldn’t afford otherwise.

It is a good idea to have a couple of open bank cards. This is especially helpful when building a good credit score, but remember these cards should be paid in full monthly. However, if you open more than three, it may not look good to a lender when they pull your credit bureau report.

Credit Card

Most people don’t know how to handle a credit card correctly. While it is understandable to go into debt under certain circumstances, many people abuse this privilege and get caught up in payments they can’t afford. Remember to pay your credit card balance every month. This will help you establish credit and improve your credit rating.

TIP! If you wish to have credit cards but you have no established credit, get a co-signer. Co-signers can be siblings, parents, close friends, or anyone with established credit.

Before you ever use a new credit card, it is important to carefully read through all of the terms of the credit card agreement. Most credit card companies consider the first use of your credit card to represent acceptance of the terms of the agreement. No matter how small the print is on your agreement, you need to read and understand it.

Never pay a credit card late. You should always be aware of when any credit card bills are due so that you do not incur any fees. Furthermore, it is common for card issuers to increase interest rates, which means that every expenditure will be more expensive going forward.

TIP! When you are applying for a credit card, only consider those with a low interest rate and no annual fee. With such a large number of cards that offer no annual fee, it is pointless to get a card that does require one.

Bank cards are usually tied to loyalty accounts. If you are a regular credit card user, sign up for a card that offers incentives you can use. If used wisely, you can end up with an extra income stream.

Credit Scores

TIP! Don’t use passwords and pin codes on your credit cards that can easily be figured out. 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.

Keeping your credit score healthy is the secret to landing a really good credit card. Credit card companies offer lower interest cards to consumers who have good credit scores. Credit cards with low interest rates, the best points options, and cash back incentives are only offered to individuals with stellar credit scores.

Understand the current laws that apply to charge cards that have changed in the past few years. For example, card companies cannot increase rates retroactively. Double-cycle billing is also forbidden. Study all relevant laws. There have been several recent legislative changes including the CARD Act that you should be aware of.

TIP! Be vigilant when looking over any conditions and terms. In today’s age, credit card companies often change their conditions and terms more often than they used to.

Unless you know and trust the company with whom you are dealing, never reveal your credit card information online or over the phone. Be extra careful if you receive an unsolicited offer for which credit card information is requested. There are numerous scams around that all wish to obtain your credit card information. Be diligent and protect yourself.

Verify all fees surrounding cards and don’t think of only annual percentage and interest rates. Application fees, cash advance fees and service charges are sometimes involved that make having the credit card less worthwhile.

TIP! Unless there is a lock located on your mailbox, do not have credit cards sent by mail. It is a known fact that criminals will target mailboxes that are not locked to steal credit cards.

If you have balances on several bank cards, choose one and work on paying it off. Even if you need to carry a hefty balance on your other cards, having a card that you use and pay off every month can build a stronger credit history.

Debit Card

TIP! Avoid the temptation to lend your credit cards to anyone. A close friend may need something, but it isn’t a smart idea to lend them yours.

Always try to use your debit card before your credit card. A great way to help you remember to do this is to put your debit card in a very noticeable space in your wallet, while hiding your credit card further back. By trying this tactic, if you are not watching what you are doing you are less like to charge an item instead of debiting it for immediate payment.

Keep a running total of your credit card expenditures and post it in a highly visible location. By having it in a visible area, you will always know how much you are charging to the card. Often, spending gets out of control because there is no self-monitoring of the process, and we wind up in a bad situation.

TIP! Be wary when making online purchases with your credit card. Make sure to only purchase from a security encrypted site.

Use those cards that you don’t wish to lose. If you do not use your cards, creditors will close the account. The only method for making sure your accounts stay open is to utilize your cards. Pay your credit cards in full each month to avoid interest charges and avoid debt.

If you are thinking about applying for a credit card which is offering cheap balance transfers or a great introductory interest rate, make sure that you read all of the small print in the terms and conditions. Make certain you are clear as to what will happen once the introductory term is over. You may find that the interest rates skyrocket and fees begin to accrue when this time frame is reached. Never use a bank cards whose costs, terms and conditions you do not fully understand.

Credit Cards

The credit card advice from this article should help anyone get over their fear of using a credit card. Credit cards are really useful if used properly and there’s no reason that someone should be afraid of using them. Just understand that credit cards can get you in trouble, but they are also a great financial tool. Good luck.