How Much Is Too Much Credit Card Debt? Check Out These Great Tips!
Posted at by CreditWiz on category Credit CardsLet’s be honest, in today’s society, people can use all the education possible on how to manage credit cards responsibly. If you do not understand how to properly use your charge cards, you may end up with insurmountable debt. If you want to find out how to make use of charge cards responsibly, check out the following suggestions.
Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. Each time a retail store inquires about your credit report, it gets recorded, regardless of whether you actually take the card. If you have too many credit inquiries, your credit score may take a hit.
Credit Card
Pay for your credit card on time every month so that you can maintain a high credit score. Any and all late payments will negatively impact your credit ranking, and could lead to expensive fees. You can save time and money by establishing automatic payments through your bank or credit card company.
You surely wish to steer clear of late charges as well as over limit fees. Both are usually pretty high, and both can affect your credit report. Be vigilant and pay attention so you don’t go over the credit limit.
The signature strips on the back of your new credit cards should be signed as soon as you receive them. Too many consumers forget this important step, and their credit cards are that much more at risk of theft. A lot of stores have the cashiers make sure that the signature on the card matches the one on the receipt.
Don’t make a written record of your credit card’s PIN or password. Memorizing your password is the only way to ensure that nobody else is able to access it. Writing your pin number down increases the chance that someone else uses it.
Be careful when you make online purchases. Closely scrutinize the companies you are willing to give your personal information to. You should contact whoever runs the site on the phone prior to ordering and don’t use a company that has no real address on their website.
Credit Score
Keep an eye on your credit score. Good credit typically starts around the 700 range. Be wise with your credit to maintain that score or to attain it, if your score is lower. With a credit score of at least 700, you will receive the lowest interest rates and best credit offers.
Financial experts advise that you should not have a credit limit greater than three-quarters of the income you bring in every month. If your limit is higher than this amount, it’s best you pay it off immediately. This is due to the fact that the interest paid will soon snowball to a point that it’s out of your control.
If your credit has been damaged, you can apply for a credit card which is secured. This type of credit card is one that requires a balance to use as collateral. The reality is that you are using money that is yours and paying interest on it. Not the best idea, but it can help you better your credit. Always using a known company for secured credit. Once you’ve resolved your credit issues to an extent, you may be able to get an unsecured card with the same company.
Having a credit card can present some challenges as well as rewards. It can provide financial flexibility, but it can also burden a card holder with excessive debt. This article has given you information on how to proper utilize your credits cards and manage your daily spending.