If you seem lost and confused in the world of credit cards, you are not alone. They have become so mainstream. Such a part of our daily lives, and yet so many people are still confused about the best ways to use them, how they affect your credit in the future, and even what the credit card companies are and are not allowed to do. This article will attempt to help you wade through all the information.
Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. Every time you try to open a card, this action is recorded. A report that is peppered with too many credit inquiries like those made by retail stores can hurt your overall credit score.
Do not accept the first credit card offer that you receive, regardless of how good it sounds. While you may be tempted to jump on an offer, you do not want to take any chances that you will end up signing up for a card and then, seeing a better deal shortly after from another company.
If you are having trouble with overspending on your credit card, there are several ways to save it only for emergencies. One of the best ways to do this is to leave the card with a trusted friend. They will only give you the card, if you can convince them you really need it.
Find a credit card that rewards you for your spending. Spend money on the card that you would need to spend anyway, such as gas, groceries and even, utility bills. Pay this card off each month as you would those bills, but you get to keep the rewards as a bonus.
Write down the card numbers, expiration dates, and customer service numbers associated with your cards. Stash this is a safe place like a safe, and keep it separate from the credit cards. This list is going to help you if you ever get robbed and they get stolen or if you lose them somewhere along the way.
Do not close too many credit accounts at once. Although you may think doing this will help you raise your credit score, it can actually lower it. When you close an account you have a higher amount of debt with a lower amount of available credit.
Document everything you put on your card each month. Be aware that making impulsive buys can add up quickly. It is very easy to charge more to your credit card than you can pay off monthly.
Compare rewards programs before you choose a credit card company. If you plan to use your credit card for a large percentage of your purchases, a rewards program can save you a great deal of money. Every rewards programs is different, it would be best, to research each one before you make a decision.
Always pay your credit card bill on time. Paying credit card bills late, can result in addition charges on your next bill, such as late fees and interest charges. In addition to this, late payments can adversely affect your credit score. This can negatively affect your ability to make purchases, and receive loans in the future.
Never lie about your income to get a higher limit on a credit card. Many companies don’t check your actual income, so your limit may be way too high.
Use cards regularly to avoid their deactivation. When accounts are not used and do not make money for the issuer, they may be prone to abrupt closure. Just make sure to only charge things that you have the cash to pay, so you can pay balances in full at the end of the billing cycle.
Transferring a balance from one credit card to another is nothing to shy away from, especially if it allows you to get more favorable interest rates and fees. Even if you are working with two cards that offer the same interest rates, one might have rewards or incentives that make it the better choice. Just be sure to understand all of the terms before you transfer any balances.
If you have misused your credit card, remember that you still have rights. Credit card collection agencies must follow the law concerning how they can collect the debt if you have stopped making payments on your card. Find out what the laws of your state are and report a collection agency that doesn’t follow the law.
If you decide to open a credit card, see what your bank has to offer, especially if you’ve banked at the same place for years. They are more likely to approve you, and have all of the information on you that they need. Local credit unions are also a good place to look.
If you are to lose your job, or fall behind on payments, you are going to want to know ahead of time what your options are. Credit card companies do like to give you this information up front, but it is up to you to take it into consideration. Therefore, think ahead, and pay attention to these details as well.
Credit cards can be a great tool when used wisely. As you have seen from this article, it takes a lot of self control in order to use them the right way. If you follow the advice that you read here, you should have no problems getting the good credit you deserve, in the future.
