Tricks And Tips That All Credit Card Users Must Know
Posted at by CreditWiz on category Credit CardsIt is easy to be intimidated by the dangers of acquiring a credit card. You don’t have to be fearful of credit cards. Credit cards are very helpful if you want to buy something and you would prefer not to utilize cash. This article has excellent credit card tips.
Credit Cards
It’s good credit practice to consistently maintain two or three open credit cards. This helps improve your credit score, particularly if you can pay off the cards each month in full. Do not over-do it. Having more than three credit cards can concern a lender looking at your credit report.
Whenever you see fraudulent charges on your statement, make a report right away. This will give the company a greater possibility of catching the perpetrator. It’s also the most efficient way to limit the liability you face for the incurred charges. You can report the majority of fraudulent charges with a simple email or phone call to the credit card company.
You want to try and avoid the fee for going over your limit just as much as late fees. They are both quite high and can have bad effects on your report. This is a very good reason to always be careful not to exceed your limit.
Keep a budget you are able to handle. While your credit card limit may be ten or fifteen thousand dollars, that isn’t necessarily what you should spend. Understand the amount of money that you can pay off each month and only spend that amount so you do not incur interest fees.
Credit Cards
Credit cards can be tied to various types of loyalty accounts. Look for a useful loyalty program if you use credit cards regularly. If used correctly, this can supply you with a bit of extra income.
Monitor your credit score. A good credit score is considered by credit card companies to be over 700. Boost or maintain your credit score by using credit appropriately. If you can accomplish getting a score of seven hundred or more, you will get better rates on loans and bank cards.
Many experts suggest that your credit limit on a given card should never exceed three-quarters of your monthly income. If your limit is higher than this amount, it’s best you pay it off immediately. This happens when the interest builds up it becomes too hard to pay back.
If you’re not pleased with the interest rate, ask your bank to change it. If they end up refusing you, you can always look for a credit card with better interest rates. Switch your balance to the lower rate card. This will save you a significant amount of money.
Credit Score
When you are looking for secured cards to improve your credit standing, avoid prepaid cards. This is because they are classified as debit cards, so they will do nothing to help your credit score improve. In addition, a number of them also charge additional fees, and they are really only another checking account. Choose a secured credit card (which requires a deposit) instead. The company will report your account to the credit bureaus and benefit your credit score.
The credit card advice from this article should help anyone get over their fear of using a credit card. Credit can be very helpful when used in the proper way, so it is unnecessary to fear it. Just remember the advice written here and you’ll be fine.