How Many Credit Cards Should You Have? Here Are Some Great Tips!
Posted at by CreditWiz on category Credit CardsThere are people afraid of using a credit card because of the myriad of problems they can present. Bank cards should not be feared. They help to build your financial history and credit score, making it easier for you to get loans and low interest rates. The article below discusses some of the best credit tips.
If you cannot afford to pay cash for something, think twice about charging it on your credit card. While it is alright to use them to pay for something you can afford at a later date, you should not buy a big-ticket item that you will have a problem paying for.
Know how closing a credit card will affect you before you do it. In some circumstances, closing credit card accounts can negatively affect the credit report, which is something that should be avoided. It is also important to keep your major credit accounts active so that you do not lose a big portion of the credit history that you have built up over the years.
Credit Card Company
Report any fraudulent charges on your charge cards right away. If you do this, your credit card company will have a good chance of tracking down the thief. Also, by notifying the credit card company immediately, you can ensure that you aren’t in any way responsible for the charges. All it takes is a quick email or phone call to notify the issuer of your credit card and keep yourself protected.
Do not bother with retail charge cards unless you have a serious intent to shop at a given store on a regular basis. When a store runs a credit check to see if you qualify for a card, it shows up on your credit report, even if you ultimately decide not to open an account. Too many retail store inquiries will cause a hit to your credit score.
Always track all purchases you make on any credit cards. Sometimes plastic makes it easy to lose track of your spending decisions, which can result in you owing more than you can afford to pay.
It is in your best interest to pay off your credit card in full every month. In the best scenario, charge cards ought to be used as convenient financial tools, but repaid fully before a new cycle starts. By using credit and paying it off in full, you will improve your credit score and save money.
Always use charge cards in a smart way. Put a limit on how much you spend and only buy items you know you can afford. Prior to choosing a credit card for buying something, be sure to pay off that charge when you get your statement. When you carry a balance, it is not hard to accumulate an increasing amount of debt, and that makes it more difficult to pay off the balance.
Write down the card numbers, expiration dates, and customer service numbers associated with your cards. Have this information in a secure area, like a safe, and away from your actual cards. This list will assist you in getting in contact with lenders in case you have a lost or stolen card.
Those with imperfect credit may want to think about getting a secured card. These are cards that require a balance as collateral. What these cards let you do is borrow money from yourself and you will pay interest to do so. Not ideal, but it may be the only way to repair your credit standing. Choose reputable companies when you sign up for secured cards. These companies might offer you one of their unsecured charge cards later, which helps you secure a better score.
When you have a credit card account, the best practice is to keep it open for the longest possible amount of time. Once you open a card, keep it open and use it regularly; don’t constantly switch bank cards. Credit scores are impacted by how long accounts have been active. Keeping accounts open for as long as possible will help build credit.
The advice you have read here can help even the most credit-shy consumer conquer their fears. Charge cards are really useful if used properly and there’s no reason that someone should be afraid of using them. Just use the advice that you read and you should not have any problems at all.