Credit cards are helpful when it comes to buying things over the Internet or at other times when cash is not handy. The piece that follows should be very useful for anyone needing to better understand credit cards and who wants to use them wisely.
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.
Carefully read through all the conditions and terms of your card agreement before using the card. Most companies think the first time you use their card constitutes accepting their terms. You should particularly go over the fine print, even though it may be difficult to read.
Pay all of your credit cards when they are due. All credit balances have a specific due date; if you don’t pay attention to it, you will likely be charged high fees. Additionally, many credit companies will increase your card’s interest rate, meaning you will have to pay off higher balances in the future.
If you have several credit cards with balances on each, consider transferring all of your balances to one, lower-interest credit card. Almost everyone gets mail from various banks offering low or even zero balance credit cards if you transfer your current balances. These lower interest rates usually last for 6 months or a year. You can save a lot of interest and have one lower payment each month!
Only take cash advances from your credit card when you absolutely have to. The finance charges for cash advances are very high, and very difficult to pay off. Only use them for situations in which you have no other option. But you must truly feel that you will be able to make considerable payments on your credit card, soon after.
If you have a credit card account and do not want it to be shut down, make sure to use it. Credit card companies are closing credit card accounts for non-usage at an increasing rate. This is because they view those accounts to be lacking in profit, and therefore, not worth retaining. If you don’t want your account to be closed, use it for small purchases, at least once every three months.
Your credit score is the key to getting access to the better credit cards. Credit card providers always investigate your credit score before they accept your application for a credit card. You must carry great credit to take advantage of the lower rates, cash back offers or points programs that are promoted by the card companies.
If you have a credit card, add it into your monthly budget. Budget a specific amount that you are financially able to put on the card each month, and then pay that amount off at the end of the month. Try not to let your credit card balance ever get above that amount. This is a great way to always pay your credit cards off in full, allowing you to build a great credit score.
Never leave a space blank on your credit card receipt when you make a purchase. If there is a blank for a tip, cross it out so that a tip cannot be written in after you’ve signed. You should also check your statements to ensure your purchases actually match the ones that are on your monthly statement.
If you are determined to stop using credit cards, cutting them up is not necessarily the best way to do it. Just because the card is gone doesn’t mean the account is no longer open. If you get desperate, you may ask for a new card to use on that account, and get trapped in the same cycle of charging you wanted to get out of in the first place!
There are many different kinds of credit cards that each come with their own pros and cons. Before you settle on a bank or specific credit card to use, be sure to understand all of the fine print and hidden fees related to the different credit cards you have available to you.
If anyone ever asks for credit card numbers by phone, do not give out this information. Scammers commonly use this ploy. You should never reveal your credit card number to businesses you do not trust, and even with your own card company you should only supply your number if you initiated the call. Never give your numbers to people who may call you on the phone. It doesn’t matter what they say, there is no way to know who they really are.
Look into whether a balance transfer will benefit you. Yes, balance transfers can be very tempting. The rates and deferred interest often offered by credit card companies are typically substantial. But if it is a large sum of money you are considering transferring, then the high interest rate normally tacked onto the back end of the transfer may mean that you actually pay more over time than if you had kept your balance where it was. Do the math before jumping in.
Do not use your credit cards to pay for gas, clothes or groceries. You will find that some gas stations will charge more for the gas, if you choose to pay with a credit card. It’s also not a good idea to use cards for these items because these items are things you need often. Using your cards to pay for them can get you into a bad habit.
Hopefully, you have found the information you need regarding credit card usage. We can never be too careful with our credit or spending and too often we realize the errors of our ways when it is too late! Remember the guidance in this piece in order to get the most out of credit card utilization and do the least damage to your personal finances.
