Ways You Can Get The Most Out Of Your Bank Cards
Posted at by CreditWiz on category Credit Cards
Credit cards are useful because they allow people to purchase items without having to instantly pay for them. Before applying for a new credit card, there is some basic knowledge that you should be aware of in order to prevent yourself from getting into insurmountable debt. Keep on reading in order to find great credit tips.
If you see any suspicious charges, report them quickly. The sooner you report it the sooner you give credit card companies and the authorities to catch the thief. It’s also the most efficient way to limit the liability you face for the incurred charges. Many false charges can be fixed with a simple phone call.
These days, many credit card companies offer large incentives for using their card. Make sure you are aware of all the details associated with such bonuses. The most common is that you have to spend a certain amount of money within a few months, so be sure that you will actually meet the qualifications before you are tempted by the bonus offer.
You surely wish to steer clear of late charges as well as over limit fees. Both fees can be very pricey, both to your wallet and your credit report. Don’t pass your credit limit or you will suffer.
Set a fixed budget you can stick with. Just because you are allowed a certain limit on spending with your bank cards doesn’t mean that you need to actually spend that much every month. You can minimize the cost of using a credit card if you stick to a budget that allows you to pay your balance off in full every month.
Understand the terms and conditions for any credit card prior to agreeing to the use of the card. You could discover the interest rate, fees, and payment schedule are a lot more than you anticipated them to be. The fine print can be daunting, but a little effort can make a huge difference in your financial situation.
Do not apply for any credit cards by mail if your mailbox is not lockable. A lot of people that admit to stealing charge cards say they got them out of unlocked mailboxes.
If anyone calls and asks for your card number, tell them no. Scammers will often use this ploy. Only provide your number to the businesses that you fully trust and to the card company when you contact them. Never provide this number to someone who calls you. There is simply no way you can safely verify the identity of an unsolicited caller.
Interest Rate
Don’t believe your card interest rate is non-negotiable. There is a great deal of competition amongst the credit card companies, and each has different interest rates. Make a request to your bank to change your current interest rate if you don’t like it.
Most professionals say that limits on your charge cards should not be more than 75% of what your salary is every month. If your limit is larger than one month’s salary, you need to pay it off as soon as you can. This is because the interest you are paying will quickly snowball out of control.
Credit Bureaus
While secured cards can prove beneficial for boosting your credit, don’t use any prepaid cards. These are not actually reported to the big credit bureaus and are really just debit cards in disguise. It’s common for them to charge additional fees even though they aren’t anything more than an extra checking account. Make a deposit and obtain an actual secured credit card. These report to the credit bureaus and will help you build your credit rating.
Credit card use is a lifesaver sometimes, but only when used wisely. The ideas in this piece have, hopefully, provided you with sufficient understanding to use credit cards regularly, but in a way that will not harm your financial future.