Guidance For Credit Cardholders From People Who Know Best
Posted at by CreditWiz on category Credit Cards
Bank cards are helpful tools in building credit and managing money. It is important to be educated on bank cards so you make educated choices. Read on for a list of informative tips on charge cards that can help people make better decisions when using their plastic.
Make sure you can afford everything you buy with a credit card. Though you may want to use a card to make a purchase that you are certain you can repay down the road, it is not smart to buy something that you clearly cannot easily afford.
Learn how closing the account associated with your credit card will affect you before you shut it down. Often, closing out a credit card accounts will adversely effect your credit rating. Also, try to keep the cards open that make up the majority of your credit history.
A lot of people do not use their charge cards the right way. While some people understandably go into debt sometimes, some people will abuse a card, and then they start racking up payments they’re not able to afford. It is ideal to pay off credit card balances every month. This way when you use credit and keep a balance that’s low, you will improve your credit score as well.
For your credit to remain in good standing, you have to pay all your credit card bills on time. Paying your bill late can cost you both in the form of late fees and in the form of a reduced credit score. Avoid this problem by setting up automatic payments to come out of your bank account on the due date or earlier.
Annual Fees
A way to make sure you are not paying too much for certain types of cards, be sure that they do not come with high annual fees. Annual fees for platinum or black cards could be in the range of $100 to $1,000 depending on the exclusivity of the card. Avoid paying these fees by refraining from signing up for exclusive bank cards if you don’t really need them.
You want to stay away from both late fees and over the limit ones. These can both amount to significant sums, and can also do damage to your credit score. Monitor things closely, and never exceed your personal limit.
Sign the back of your credit card as soon as you receive it to avoid fraudulent use. The signature on the back offers protection against fraudulent purchases because the cashier verifies that the customer’s signature matches the signature on the card.
Don’t write your pin or password down where others can see it. The safest place for this information is in your memory, where nobody else can access it. Keeping your card and the PIN in the same location is an open invitation to thieves and fraudulent people.
Never, ever, under any circumstance lend out your credit card to someone. Although you might be tempted to help out a good friend, lending out your credit cards is not a good idea. This can lead to excessive charges, over the limit fees, and other problems if your friend happens to charge more than they should.
Card Information
Use caution when using your charge cards online. Make sure to only purchase from a security encrypted site. Secure sites keep your card information safe. Be sure to ignore emails asking for card information as these are attempts at getting your personal information.
Never give your credit card information out over the phone. Many dishonest people use this ploy to get credit card information from unsuspecting people. Make it a point to only give your credit account number to trusted businesses when you have originated the call. Do not give them to people who call you. There is simply no way you can safely verify the identity of an unsolicited caller.
As this article said in the beginning, charge cards are great at helping one deal with their credit and can be beneficial. An understanding of each card is imperative so that you can make education decisions. Having a grasp of credit card basics can benefit consumers in that way, helping them to make smart credit decisions.