Credit cards have the power to cause financial ruin, but they don’t have to. However, if used properly, they could offer great benefits, rewards and even peace of mind. If you want to know a little bit more about how to go about having a credit card in the right way, keep on reading!
If you want a credit score that is good, be sure that you’re able to pay credit card payments before it’s due. If you don’t do this, you could incur costly fees and harm your credit score. Set up auto payments with your creditors to save money and time.
Tell the credit card company if you are facing a difficult financial situation. The company may adjust your payment plan so that you will not have to miss a payment. This communication may keep the company from filing a late payment report with creditreporting agencies.
Use credit cards intelligently. Control your spending, and only use your card to buy things that you are able to afford. Before using credit cards to get something, you need to know if you’re able to pay it off right when you get a statement. If you keep a balance on your account, it is easy to be tempted into spending more and this will make it more difficult to repay.
Make sure you are fully aware of your card agreement’s terms. Many companies consider you have accepted the terms when you initially use the credit card. Although the print may be small, it is extremely important to read the agreement fully.
Keep track of your credit score. Good credit is considered to be a credit score over 700. Proper use of credit cards can be one way to improve or maintain a good credit score level. When you have a score that is around 700, or even higher, then you can get good credit offers that have minimal rates.
Although it can be tempting to make payments right after purchasing something, avoid this. Rather, wait for your statement to come and then pay the entire balance. This will reflect better on your payment history and give you a better credit score.
Track exactly how much you spend each month via your credit card. Remember that impulse purchasing can increase your balance rapidly. If you aren’t tracking your credit card balance, you may be surprised when you get your statement at the months end.
When you owe more than you can pay, you can end up having financial difficulties in the future. If your credit becomes damages it may be hard to get a job, rent an apartment, get insurance or finance a car.
Close the account for any credit cards you know you will not be using. When you leave the account open, it’s much more likely that you’ll wind up falling victim to identity theft. You could also be charged annual fees for keeping a credit card account open that you no longer need or use.
Place credit cards behind debit cards in wallets in order to prevent accidental credit charges. If you do this, you will use your debit card even when you aren’t paying attention, rather than your credit card.
Make sure you are only using cards that you want to keep. Inactive accounts are usually closed by most creditors. There is only one way to ensure that your account remains opened: use the credit card periodically. Just make sure you pay them off to avoid debt.
Use your cards regularly if you do not want to chance losing them. If you have an account that is not active, many companies will simply close the account. Use credit cards responsibly to buy things for which you have cash on hand, and pay off the bill in full each month.
Except for situations involving secured cards, you should not have to pay advance fees to obtain credit cards. Not a single card company that is legit asks for any upfront fees. Refuse to pay persons who claim they can help you get approved for credit cards. As long as your credit is good, you can get a card by yourself.
Don’t forget that no one owes you a credit card. They are a privilege that must be earned. When you make good choices it will help your credit, but it will hurt you if you make bad ones. The wise way to manage your cards is by tracking all charges and making all your monthly payments on time.
Immediately call your credit card company when you have lost your credit card. This way, you can immediately ensure that no other person can use your card. The company will also assign you a new account number and provide you with a new card.
Most credit cards come with a pre-set limit on the amount of money you are able to spend. Make sure to pay attention to that limit, and never exceed it. If you are close to your credit limit, you may not be able to use your card during an emergency.
Only keep the credit cards on you that you intend to use. This way it will be obvious to you if one is missing. Keep your credit cards together in a safe place and check each of them regularly. If you cannot find your cards, contact the issuing credit card companies immediately to cancel them.
Find a secure location to write all of the numbers of your credit cards and the contact information for each one of them. Keep that information in a place that is secure. This way, if you ever get your wallet or purse stolen, you could easily contact your credit card provider and report the loss. It is imperative that you report a missing credit card swiftly, otherwise you could be held responsible for any unauthorized charges.
Credit cards can be a very convenient payment option if used properly. Ranging from having flexibility to possibly racking up some perks, the credit cards that you own now or in the future can greatly brighten up your life. Use the knowledge you gained to manage your credit card, and build good credit.