Credit cards help individuals manage their money and build a good credit history. It is necessary to gain an understanding of credit cards, however, in order to use them wisely. The credit card tips that follow are meant to help consumers make smart choices when they choose to use plastic.
Be safe when giving out your credit card information. If you like to order things online with it, then you have to be sure the website is secure. If you notice charges that you didn’t make, call the customer service number for the credit card company. They can help deactivate your card and make it unusable, until they mail you a new one with a new account number.
Make sure that you pore over your credit card statement each and every month, to make sure that every single charge on your bill has been authorized by you. Many people fail to do this and it is much harder to fight fraudulent charges after a lot of time has passed.
If you find that you have spent more on your credit cards than you can repay, seek help to manage your credit card debt. It is easy to get carried away, especially around the holidays, and spend more than you intended. There are many credit card consumer organizations, that can help get you back on track.
Don’t automatically run out and get a bit of plastic as soon as you are of age. Although people love to spend and have credit cards, you should truly understand how credit works before you decide to establish it. Get a little bit of adult experience under your belt before making the leap.
When looking for a new card, find one that has low interest and fees. There are many options that don’t have annual fees, so it is silly to choose a card that does.
Select a password for your card that’s tough to identify for someone else. It’s a bad idea to use a common password like a middle name or phone number since people could guess these.
Learn how to manage your credit card online. Most credit card companies now have online resources where you can oversee your daily credit actions. These resources give you more power than you have ever had before over your credit, including, knowing very quickly, whether your identity has been compromised.
As a general rule, you should avoid applying for any credit cards that come with any type of free offer. More often than not, anything that you get free with credit card applications will always come with some sort of catch or hidden costs that you are sure to regret later on down the road.
Although it can be tempting to make payments right after purchasing something, avoid this. Pay the whole balance instead once your credit card statement comes. That way, your payment history will improve your credit score.
To avoid interest charges, don’t treat your credit card as you would an ATM card. Don’t get in the habit of charging every single item that you buy. Doing so, will only pile on charges to your bill, you may get an unpleasant surprise, when you receive that monthly credit card bill.
Make sure to look over credit card statements very carefully. Check each statement for any inaccuracies as well as changes you did not authorize. Always inform your issuer of problems as soon as possible. This way, you will be paying the correct amount, and your credit score won’t be unduly affected.
Do your research prior to applying for a credit card. Certain companies charge a higher annual fee than others. Compare the rates of many different companies to make sure you get the one with the lowest fee. Also, do not forget to find out if the APR rate is fixed or variable.
Your oldest credit card is the one that affects your credit report the most. Do not close this account unless the cost of keeping it open is too high. If you are paying an annual fee, ridiculous interest rates, or something similar, then close the account. Otherwise, keep that one open, as it can be the most beneficial to your credit score.
Stay away from pre-approved offers from credit card companies. Remember, it is not the credit card companies responsibility to find the best card for you, it is their job to sign up as many people as possible. Using whatever marketing techniques they can. The pre-approved offers sound tempting, but they tend to include extremely high interest rates.
When signing up for a credit card, be sure that you check out what all of the penalties are if you miss a payment. This is of great importance because some companies not only will fine you, but they may also permanently increase your APR to an extremely high percentage.
Look out for cash back credit cards. These types of credit cards give you cash back on every purchase that you make with the credit card. Cash back rates can range from 1% to 5%, so over the course of a year, you could actually earn a lot of cash back.
Do not make discretionary purchases if you cannot afford to substantially pay down your credit card debt each month. If you are making these types of purchases regularly, then you run the risk of not being able to ever pay down the debt, and also you will put yourself in a bad situation should an unexpected emergency crop up.
Following the tips above, an individual can benefit while trying to build credit and manage their finances. Understanding each credit card is important, because this helps make better choices. The tips in the text above are designed to help individuals make the right choices when dealing with credit.
