Bank cards offer perks, such as vacation points, to those who use them wisely. Other people who don’t use bank cards wisely deal with unexpected, large bills. If you use your card properly, keep reading on how to find the best cards that you can use intelligently.
Before canceling a credit card and closing your account, ensure you understand how canceling it affect your credit. Sometimes it is better to leave an unused credit account open than it is to close it. It is important that you keep your oldest charge cards open, as they account for your credit history.
Know what interest rate your credit card gets. It is essential that you find out before you ever sign up for the card. If you don’t, you might end up paying so much more money in interest. You may find it very hard to pay off your debt each month when high interest charges are added to your balance.
Make it your goal to never pay late or over the limit fees. Both are expensive fees and exceeding your limit can also hurt your credit score. Pay attention and make sure you stay under your credit limit.
Always adhere to a budget when it comes to using bank cards. You should already be budgeting your income, so just include your bank cards in your existing budget. It is unwise to consider credit as being some additional, unrelated source of funds. Set aside a budgeted amount that you are allowed to spend, and never allow yourself to put more than that on your cards. Stick with it and pay it every month.
If you ever get a phone call that asks for a credit card number, you should never give out that information. Credit card thieves often contact people by telephone. If you must use your credit card over the telephone, only do so with companies you know you can trust. If a random company calls you first, don’t share your numbers. No matter what or who they might claim to be, there is no way for you to know who you are talking to.
If you’re not happy with the interest rate that you are being charged, ask the bank if they can change it. If they refuse to do this, try looking for cards at a different company. If you find a card with better interest rates, switch credit card companies so that you can more easily meet your needs.
Credit Card Payment
A good thing to remember is that you should not immediately make a credit card payment after you make a charge. Instead, pay the balance as soon as you receive the statement. Your credit card payment history will look better and it will raise your credit score.
It is not uncommon for people to avoid acquiring credit cards because they want to give the impression that they are debt-free. It’s important to have, at the very least, one card, so you are able to build your credit. It is safe to use a card if you pay it off fully every month. If you have no credit, your credit score could become lower and potential lenders cannot tell if you can manage your debts or not.
It is important to keep your credit card number safe; therefore, do not give your credit information out online or on the phone unless you completely trust the company. Be very suspicious of any offers that are unsolicited and request your credit card number. There are many dishonest people in the world who want your information. Be relentless in protecting yourself.
If you owe more on your charge cards than you can actually pay back, you run the risk of damaging your credit rating. A poor credit score can hurt your chances of buying a car, renting an apartment and getting good insurance rates. It can even make it harder to get the job you want.
Make note of all fees and charges of potential cards. You may find application fees, fees for cash advances or service charges that nullify any benefits the card offers.
Remember that your interest rate is negotiable. In many cases, you may be able to successfully negotiate a lower rate with your creditor. You have a good chance receiving a lower APR if you have been making your payments in a timely manner.
If you see that you might make an unusual purchase or series of purchases let your credit company know. Traveling internationally and making very large purchases are examples of this. This will prevent any concerns by the company over identity theft and can keep your card from becoming locked.
Never be afraid of paying one credit card balance off with another card, as long as you get a lower interest rate and better fees on the card you transfer the balance to. Even if interest rates are similar, other cards might give perks or points towards airline tickets. Sit down, calculate costs, and weigh the benefits and drawbacks.
Use only one credit card for online purchases; this way, if your information is compromised, you don’t lose all of your credit cards. The more cards you use online, the more vulnerable you will be if your information is compromised. So limit the possible liability by having one card only for use online.
Is your payment due date an actual due date or just a suggested one? Many credit card companies are now resorting to suggested due dates, which can be as much as 15 days sooner than the true due date. If you have a suggested due date, find out what your actual due date is, too. This gives you a better idea of how long you have to make your payment if you are in a pinch.
Even cards which don’t offer rewards can still help you. Using these strategies can help you enjoy your bank cards, without the stresses sometimes associated with their usage. Use the tips from this article so you avoid the pitfalls associated with bank cards.