Advice for consumers is a business in and of itself these days. Credit cards are often a focus for much of this business. The proper use of a credit card can help ensure you maintain a positive credit score. Lots of people own credit cards that they do not know how to wisely use. This causes these people to get in financial trouble fast.
Never use your credit to buy things that are out of your price range that you cannot pay off. While it is okay to use your card for something that you know you will be able to afford to pay in the near future, you should avoid impulse and high-ticket purchases until you can save enough money to truly afford them.
Know how closing a credit card will affect you before you do it. Many times it leads to lowering your credit score which you do not want. It is also important to keep your major credit accounts active so that you do not lose a big portion of the credit history that you have built up over the years.
Only inquire in regards to opening retail cards if you seriously shop at that store regularly. Even applying for a card with the store will reflect badly on your credit score if you’re not accepted, and there’s no sense in applying if you’re not a regular shopper. Excessive inquiries from those retailers on your report can drop your credit score.
Never pay a credit card late. Neglecting your credit card’s due date can result in late charges for you. Also, the majority of card companies will increase your rate, which means all future purchases cost you more money.
Don’t put off signing the back of any new bank cards you’ve been issued. If you don’t sign it immediately, your card can easily be stolen and used. Many cashiers will check to make sure there are matching signatures before finalizing the sale.
Don’t use passwords and pins for your cards that can be simply figured out by someone else. Never use your birth date, children’s names, middle name, or anything else that could be figured out easily by someone looking to steal from you.
Be sure you don’t order credit cards if your mailbox isn’t lockable. A lot of people that admit to stealing charge cards say they got them out of unlocked mailboxes.
When signing credit card receipts in stores, don’t leave blank spaces. Always cross out the tipping line, so an amount that you did not authorize is not added in later. You should also check your statements to ensure your purchases actually match the ones that are on your monthly statement.
Don’t write down your password or pin number. You need to remember your password without writing it down so that other people can’t access it. If you document your pin number, and keep it with your card, anyone can use it.
No matter how tempting, never loan anyone your credit card. Even if it is a great friend of yours, that should still be avoided. You may end up exceeding your credit limit and incurring charges if they make charges you were not expecting.
A good tip for every credit card user is to request a free copy of your credit report each year and make sure that that everything is accurate. Compare the information on the report with your credit card statements and be certain they match.
Some people avoid getting any bank cards, to afford the appearance of having no debt at all, and this can be a mistake. You need to carry at least one credit card, so that you can build credit. Use the card, then pay the balance off every month. If you have no credit at all, lenders are not able to ascertain if you are good at debt management or not.
Don’t ever fax other people a credit card number. The fax could be viewed by anyone and could sit in the fax machine for days and give anyone the opportunity to view your private information. Anyone in their office might be a thief. This may make it easier for someone to commit fraud against you and that causes problems.
Again, it’s very easy to get yourself into trouble with your credit card use. If you spend too much on too many cards, you will be in a tight spot. It is hoped that the advice in this article can help prevent credit card issues for you and help you remain financially healthy.