Credit cards can be your best friend or your worst enemy. With just a little attention or energy, you can go out on a shopping spree that ruins you financially for months or maybe even, rack enough points for airline tickets to Europe. To make the most out of your credit cards, read on.
Keep a close watch on your balance. Know what your limit is and how much you’re spending, you don’t want any surprises. If for some reason you exceed your limit, you will be liable for large fees that you might not know about. This will make it incredibly difficult to repay your balance.
Ensure you are always paying your credit card bill on time. High fees become the norm when you pay your credit card after the due date, and you really want to avoid those fees. Furthermore, it is common for card issuers to increase interest rates, which means that every expenditure will be more expensive going forward.
Anyone seeking a new charge card ought to restrict their hunt to those cards offering low interest and no annual membership fees. With such a large number of cards that offer no annual fee, it is pointless to get a card that does require one.
Live by a zero balance goal, or if you can’t reach zero balance monthly, then maintain the lowest balances you can. Credit card debt can quickly spiral out of control, so go into your credit relationship with the goal to always pay off your bill every month. This is especially important if your cards have high interest rates that can really rack up over time.
If you are making a purchase on the Internet, ensure you are dealing with a legitimate person or company before handing over your credit card details. You do not want to deal with a merchant that does not provide a physical address on his or her site. Dial up the phone numbers shown on the merchant’s site to verify that they are in operation.
If you do a lot of traveling, use one card for all of your travel expenses. If it is for work, this allows you to easily keep track of deductible expenses, and if it is for personal use, you can quickly add up points towards airline travel, hotel stays or even restaurant bills.
If you go to make a purchase with your credit card and you are told that there will a surcharge for using that payment method, you can refuse to pay it and demand they accept your purchase. Many credit card companies do not allow merchants to impose fees, so you should check out the policies of your card company.
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 getting rid of an old credit card, cut up the credit card through the account number. This is especially important, if you are cutting up an expired card and your replacement card has the same account number. As an added security step, consider throwing away the pieces in different trash bags, so that thieves can’t piece the card back together as easily.
Keep multiple credit card accounts open. Having multiple credit cards will keep your credit score healthy, as long as you pay on them consistently. The key to keeping a healthy credit score with multiple credit cards is to use them responsibly. If you do not, you could end up hurting your credit score.
Go through any older accounts and think about closing the ones that are inactive. Closing accounts that are old prevents them from getting used in a fraudulent manner. It is possible to close any account that you do not want anymore even if a balance remains on the account. You merely continue making payments on the balance until you pay it off.
Be careful what secured credit card that you choose. The company might offer certain perks, but the whole program has to be headed in the right direction. If it is not tailored to get your credit on track, then what you will see is yourself stuck with yet another harmful account, and your credit score going down the tubes.
Make sure that you destroy any credit card applications that you have received in the mail since they can become a great way for someone who wants to steal you identity to be successful. You should purchase a small paper shredder and have it handy to destroy them before you toss them out.
Be certain to make monthly credit card payments on time. Most companies will charge a late fee. A late fee can be as high as $25. Fees might increase each time you are late.
It is important to pay your credit card’s required minimum payment every single month. One missed payment can spell disaster for your credit score and ruin future attempts at obtaining credit. In addition to this, late fees are charged to you by providers when you miss a payment.
As was mentioned earlier, credit cards can accelerate your life. This can happen towards piles of debt or rewards that lead to dream vacations. To properly manage your credit cards, you must manage yourself and intentions towards them. Apply what you have read in this article to make the most of your cards.
