Keep Credit Cards From Ruining Your Financial Life
Posted at by CreditWiz on category Credit CardsIt can be hard to sort through all the credit card offers you get in the mail. Some cards are easier to get, while others have great rewards programs, and still others give low interest rates. Which should you choose? This article will help you understand common credit card offers so you can make a more informed choice.
Never close out a credit card account without making sure that you know how it will affect you. There’s times when you close a card that can have negative affects on your next credit report. It is also best to keep your oldest cards open as they show that you have a long credit history.
Credit Score
Don’t consider opening a store credit card unless you plan to make purchases at the store on a regular basis. If a retail store inquires on your credit, the inquiry will affect your credit score, even if you do not open the card. Too many inquiries can make your credit score go down.
Always pay your bills well before the due date, as this is a big part of maintaining your high credit score. Paying late can rack up expensive fees, and hurt your credit score. One of the best ways to save you both time and money is to set up automatic payments.
A minimum payment is there in order for the company to milk money from you for a greater length of time. Always pay above the minimum. This will help you to avoid high interest rates, and it will also help you take years off of the payment structure.
Make sure to keep a budget when you are using bank cards. You need a budget for the money you make; therefore, your credit should be included in it. Your credit card is not extra money, so never view it this way. Have a set amount you are happy to spend monthly using this card and stick to it. Stick to it, and make sure you pay them off every month.
Credit Card Company
Talk to the credit card company if you are having financial problems. Oftentimes, the credit card company might work with you to set up a new agreement to help you make a payment under new terms. This will also help prevent negative reporting to credit bureaus.
When dealing with a credit card, make sure you’re always paying attention so that various term changes don’t catch you by surprise. It is common for companies to change credit terms very often. Often, the changes that most affect you are buried in legal language. Just look through everything to find such changes. These may include changes to rates and fees.
Credit Card
Don’t start using charge cards to purchase things you aren’t able to afford. A credit card isn’t the magical solution to getting the flat screen TV or new computer that you have always wanted. It costs a lot of interest, and that makes monthly payments pretty much impossible. Go home to mull it over for a couple of days and then reach a rational decision. Talk to the store if you still want to buy a big-ticket item after thinking it over. You may be able to get financing in the store, and many times this is a better deal than using your credit card.
People typically receive dozens of credit card promotional letters everyday in their mail. It can be frustrating trying to sort through these offers. If you know what you are doing, it is easy to figure out credit cards. This article gave valuable advice to assist you in making better credit card choices.