Credit cards can be extremely dangerous. By spending too much, you are opening yourself up to high borrowing costs and interest rates. However, credit cards offer peace of mind, perks, and conveniences when properly used. Continue reading to learn the many benefits of credit cards, as well as how to avoid their many pitfalls.
Pay for your credit card on time every month so that you can maintain a high credit score. Late payments can damage your credit score and often involve costly fees. Using automatic payment features for your credit card payments will help save you both money and time.
If you are looking to open a credit card though you do not have any type of established credit, finding someone to co-sign for you can do the trick. A co-signer can be a parent, sibling, trusted friend or anyone else who has already established credit. They must agree to pay the balance if you are unable to. This is a perfect way to start building your credit.
Be sure you go over the terms that come with your credit card as carefully as possible prior to using it. Most companies consider you to have agreed to the card agreement when you first use the card. Be aware of all of the “fine print” that comes with your credit card!
Read the small print before signing up for a credit card. You could discover the interest rate, fees, and payment schedule are a lot more than you anticipated them to be. Read all the fine print so that you totally understand the card’s terms.
When looking for a new credit card, only review offers that charge low interest and have no annual fees. With such a large number of cards that offer no annual fee, it is pointless to get a card that does require one.
When you make online purchases with your credit card, always print out a copy of the sales receipt. Keep the receipt in a secure location, and when your credit card bill arrives, check that the online retailer charged you the right amount for the item that you purchased. File a dispute with your card company if there is any discrepancy. This is a great way to make sure you are never overcharged for the items you buy.
Before making an online purchase with your credit card, you need to make sure that you are dealing with a legitimate seller. Call the contact numbers on the website to ensure they are working, and avoid venders that do not list a physical address.
Avoid paying off your credit card balance immediately after you use the card. Pay the whole balance instead once your credit card statement comes. Doing so will help you build a stronger payment record and boost your credit score.
When you get new credit cards, you will need to keep the credit account open for at least several years. Don’t switch to another credit card account unless you really have to. A longer history on an account will benefit your credit score. Another element to establishing credit is to maintain and keep you credit accounts open and active at all times.
Don’t ever fax other people a credit card number. Faxes may sit in an accessible area for a lengthy period of time, giving many people the ability to see to your number. Any of these people could be, or know of, a thief. This leaves you wide open to fraudulent charges.
Issuers of secured cards are often willing to give you unsecured cards once you have demonstrated your financial responsibility. This is often when you may begin receiving additional card offers. This is when you are going to have to go into decision-making mode, yet again, when re-evaluating your situation.
Only carry the credit cards that you need to carry on a daily basis. If you have more than two or three cards, consider which ones get the most usage. As a general rule, these will be the charge and gas cards you use every day. Keep only those on you, and secure the rest at home.
Keep a close eye on transactions associated with your credit cards. Many credit card companies offer text alerts for your mobile phone. This will help you to stay informed of any irregular activity in a timely manner, allowing you to question things when necessary. If you ever see something that looks suspicious, don’t be afraid to put a call in to your lender or even the local police.
Periodically, survey your usage of credit card accounts so you may close those that are no longer being used. If you close these accounts, thieves can’t use them fraudulently. You can close a card you do not plan on using any longer even if it is still a balance on it. Just keep making payments until you have paid off the whole amount.
Try using post-it notes with your credit card balances in places that you often see in your workspace. This helps you remember how high your balance is, and what types of things you are buying with credit. It easy to let credit card debt get out of hand. Having it posted in an area you will see often prevents your charges from getting out of control.
In order to keep an eye on your financial management skills, check your credit report regularly. It is a great way to see how others handle your accounts as well. Make sure you notice if there is a credit reporting error. If you find one, contact the credit bureau and your card company to dispute it.
Never pay a credit card bill with that credit card. Sometimes, in desperation, card owners will use cash advances to get themselves through a month that they cannot afford to make any credit card payments. However, the fees and interest rates that are incurred by doing this is simply creating a larger emergency disaster in the following month.
When credit cards are used in a mindful manner, they can provide you with huge benefits. Credit cards can help in an emergency or offer rewards. Use the advice in this piece in order to achieve real success.