There are people who are frightened of the very idea of credit cards. There is no need to fear credit cards. They are very useful when you respect them. This article will show you some helpful tips to keep in mind when using or applying for credit cards.
When it is time to make monthly payments on your credit cards, be sure that you pay more than the minimum amount that you are required to pay. If you only pay the small amount required, it will take you longer to pay your debts off and the interest will be steadily increasing.
If you are in the market for a secured credit card, it is very important that you pay close attention to the fees that are associated with the account, as well as, whether they report to the major credit bureaus. If they do not report, then it is no use having that specific card.
Practice sound financial management by only charging purchases that you know you will be able to pay off. Credit cards can be a quick and dangerous way to rack up large amounts of debt that you may not be able to pay off. Don’t use them to live off of, if you are unable to come up with the funds to do so.
If you have credit cards be sure to check your monthly statements thoroughly for errors. Everyone makes errors, and this applies to credit card companies as well. To prevent from paying for something you did not purchase you should save your receipts through the month and then compare them to your statement.
Many credit cards offer loyalty programs. If you use a card all the time, you need to find one with a useful loyalty program. A loyalty program can be an excellent way to make some extra income.
Anytime you apply for a credit card, you should always familiarize yourself with the terms of service that comes along with it. This will allow you to know what you can and cannot use your card for, as well as, any fees that you might possibly incur in different situations.
Everyone has been there. Getting one envelope after another in our mail from credit card companies, imploring us to sign up with them. Sometimes you may want a new card, sometimes you might not. When you throw out the mail, rip it into small pieces. Why? Your delicate personal information is contained on these solicitations, and a thief can easily damage your credit by stealing your identity.
Don’t open too many credit card accounts. A single person only needs two or three in his or her name, in order to get a good credit established. More credit cards than this, could actually do more damage than good to your score. Also, having multiple accounts is harder to keep track of and harder to remember to pay on time.
A great tip for saving on today’s high gas prices is to get a reward card from the grocery store where you do business. These days, many stores have gas stations, as well and offer discounted gas prices, if you sign up to use their customer reward cards. Sometimes, you can save up to twenty cents per gallon.
Watch rewards programs. These programs are quite popular with credit cards. You can earn things like cash back, airline miles, or other incentives just for using your credit card. A reward is a nice addition if you’re already planning on using the card, but it may tempt you into charging more than you usually would just to get those bigger rewards.
Most analysts state that a credit limit should be no greater than 75% of a monthly salary. If you have credit limits that are more than you make every month, you need to start paying off that debt right away. Otherwise, you may soon be paying a lot more interest than you can afford.
Carefully review all statements you get from your credit card company. In addition to unexpected account changes or charges you don’t remember making, check to make sure that all of the charges listed are for the correct amounts. Immediately report any inaccurate charges to the credit card company. This will help you reduce the amount you pay and will raise your credit score.
Do not be dishonest about your finances when you are applying for credit cards just because you would like a higher limit. Some companies fail to verify your income but offer you a card that has a high limit. The result can be that you charge a higher amount of money than you are able to pay.
Use cards that offer you a low interest rate with a balance transfer cautiously. In many cases, that rate is only available for a short period of time. When that time expires, the rate might jump to three or four times that amount. Make sure that you understand the terms and make an educated choice about choosing, and using, these cards.
If you are paying a higher annual percentage rate (APR) on your credit cards, but have good credit, call your credit card company and ask if they will lower it. Sometimes, they may actually agree. This can save you a lot every month that you have to carry a balance.
If you use your credit cards to pay for gas, do not run too close to your spending limit if you have a purchase coming up. Many gas stations will put a $75 hold on your credit card for a few days, eating up your available space, meaning you can not charge other things.
Anyone who is scared to use their credit card should feel better after reading this article. If you use a credit card responsibly it can actually be extremely useful. Just keep the advice you got from here in mind and everything will go smoothly.
