Before You Buy On Credit, Read This!Posted at by CreditWiz on category Credit Cards
Many people have benefited from the proper use of charge cards. Having a credit card dramatically increases a person’s financial freedom. Having said that, it is always important to choose a credit card wisely and use it with a high level of diligence. Here you will find some helpful information that can benefit consumers as they learn to control their credit card habits.
Don’t use credit as an excuse to buy items that are outside your price range. While credit can help you afford things you can pay off over a few months, avoid charging expensive items that you cannot pay off quickly.
Paying annual fees on a credit card can be a mistake; make sure to understand if your card requires these. Certain exclusive cards charge annual fees upwards of $1,000. Avoid paying these fees by refraining from signing up for exclusive charge cards if you don’t really need them.
The moment you receive a letter or email regarding your credit card, be sure to read it right then. Credit card companies are allowed to make certain changes to fees, regular interest rates and annual membership fees, as long as they give you written notice of the changes. You have the right, if you don’t like these changes, to immediately cancel the card.
Before making an online purchase with your credit card, you need to make sure that you are dealing with a legitimate seller. Make sure to call the listed phone numbers to ensure that the company is who they say they are. Also look for a physical address listed.
It is highly recommended that your credit card limits remain less than 75% of the total money you make every month. If you have credit limits that are more than you make every month, you need to start paying off that debt right away. Interest can easily grow to very large amounts that are difficult to pay off. So, pay off the accounts with the higher limits to avoid becoming overwhelmed.
Avoid closing your credit card accounts. Open accounts always help a credit score while closed accounts can end up hurting it. The reason for this is that the credit reporting agencies look at your available credit when considering your score, meaning that if you close accounts your available credit is lowered, while the amount you owe remains the same.
Once you acquire a credit card, you should work to keep it active for the longest period possible. You do not want to switch to different accounts unless it is absolutely necessary. The amount of time you have accounts open impacts your credit rating. A good way to build your credit is to keep your accounts open.
Make sure to always carefully review any credit card statements you receive. Look for any inaccuracies in the charges you have made, as well as any changes that you did not make at all. If you see a questionable charge, immediately report it to the credit card company. This way, you will be paying the correct amount, and your credit score won’t be unduly affected.
If you want to hang onto a credit card, make sure that you use it. Inactive accounts are often closed by creditors. The best way to ensure your account stays open for when you need it is to use a card occasionally. Even if they are just small charges, do not forget that you have to pay them off so you will remain debt free.
Credit cards can offer many advantages and increase spending options to create a better lifestyle for consumers. Bank cards can be a double edged sword in that they can put consumers both in a very good position or bad position, depending on how they are used. Use the advice from the article above to make credit card decisions wisely and enhance your life.