If you have never owned a credit card before, you may not be aware of the advantages it contains. A credit card can be used as a alternative form of payment in many locations, even online. In addition to this, it can be used to build a person’s credit score. If these advantages appeal to you, then continue reading for more information on credit cards and how to use them.
Don’t cancel a card before assessing the full credit impact. Many times it leads to lowering your credit score which you do not want. The card that makes up most of your financial history should not be closed.
If you see a charge on your card that isn’t yours, talk to your credit card issuer immediately. If you do this, your credit card company will have a good chance of tracking down the thief. It will also serve to make sure you are not going to be held accountable for any false charges. A simple phone call is usually all it takes to report fraudulent charges or put a hold on a stolen card.
Do not lend your credit card to anyone. Credit cards are as valuable as cash, and lending them out can get you into trouble. If you lend them out, the person might overspend, making you responsible for a large bill at the end of the month. Even if the person is worthy of your trust, it is better to keep your credit cards to yourself.
Always track all purchases you make on any credit cards. If you don’t, you may forget how much money you have already spent on your card- write it down!
To make the best decision regarding the best credit card for you, compare what the interest rate is amongst several credit card options. If a card has a high interest rate, it means that you will pay a higher interest expense on your card’s unpaid balance, which can be a real burden on your wallet.
Credit cards are usually tied to loyalty accounts. Look for these highly beneficial loyalty programs that may apply to any credit card you use on a regular basis. If you avoid over-extending your credit and pay your balance monthly, you can end up ahead financially.
Keep your receipts from all online purchases. Don’t throw away the receipt until after you get your statement. Check the statement against the bill to ensure you weren’t overcharged. If any charges are incorrect, you should immediately file a dispute. This method ensures that you are always charged the correct amount on all of your purchases.
If anyone ever asks for credit card numbers by phone, do not give out this information. The odds are excellent that an unsolicited request like this is a scam. Only provide your number to businesses that are trusted and your card company only when you actually call them. Don’t give them to random phone callers. No matter what or who they might claim to be, there is no way for you to know who you are talking to.
Make your credit card payments on time and in full, each and every month. Most credit card companies will charge an expensive late fee if you are even a day late. If you pay your bill 30 days late or more, creditors report this late payment to the credit bureaus.
Carefully review all statements you get from your credit card company. Try to find anything that doesn’t seem accurate and look for charges you may not have made. If you find inaccuracies, tell the credit card company as soon as possible. This can help to prevent you from paying too much and it might just save your credit score too.
Department store cards are tempting, but when trying to improve your credit and keep a great score, you need to keep in mind that you don’t want a credit card for everything. Department store cards can only be used at that specific store. It is their way of getting you to spend more money at that specific location. Get a card that you can use anywhere.
Shred old credit card receipts and statements. You can easily purchase an inexpensive home office shredder to handle this task. Those receipts and statements, often contain your credit card number, and if a dumpster diver happened to get hold of that number, they could use your card without your knowledge.
Be careful when you are signing up with secured credit card companies because a lot of them charge high fees in exchange for issuing you a card. If you have to get this type of card, then you should shop around to make sure that you are paying the lowest fees.
Read the terms of the agreement before you accept a credit card with an introductory rate or consider any balance transfers. Make certain you are clear as to what will happen once the introductory term is over. Sometimes, a very low introductory rate masks a much higher rate after the initial period passes. Ensure that you understand the situation before you sign up.
If your credit card is charging you a high rate of interest on your balance, consider transferring it to a lower interest rate card. This can save you a lot while you are working to pay down that balance. The key is to not charge any more on the old card once you have transferred your balance, or you will end up in a worse financial situation.
Don’t pay upfront fees for your credit cards unless you are seeking a credit card that is secured. Not a single card company that is legit asks for any upfront fees. You should never pay another person to assist you with procuring credit cards. Provided you have solid credit, you can get cards without assistance.
Now that you are aware of how beneficial a credit card can be, it’s time to start looking at some credit cards. Take the information from this article and put it to good use, so that you can apply for a credit card and start making purchases.