Credit Card Tips For The Concerned Consumer
Posted at by CreditWiz on category Credit CardsCredit cards can be useful in a lot of ways because they enable people to buy items without them having to pay for them instantly. Excessive credit card debt can be easily avoided if you learn a few simple rules in advance. Read on to find some valuable information about credit cards.
Never close a credit account until you understand how it affects your credit history. Often, closing out a credit card accounts will adversely effect your credit rating. In addition, if you have cards that make up a large portion of your entire credit history, try to keep them open and active.
Set a fixed budget you can stick with. Do not max out a credit card simply because you have a large credit limit. Know your monthly income, and only spend what you can pay off in full each month. This will help you to avoid owing interest payments.
Make sure to completely understand your credit card terms before signing up with one. The fees and interest of the card may be different than you originally thought. Read through the entire terms of agreement pamphlet to make sure you are clear on all the policies.
Always read correspondence regarding your credit cards right when it arrives. If a company has notified you that they will change a policy, they are within their rights to do so. If you don’t agree with their changes, it’s your decision if you want to cancel your credit card.
Never use a credit card to buy things you can’t afford. Wanting a new TV or game console is not a good reason to put it on a credit card. Paying huge amounts of money on interest is not smart and should be avoided. Exit the store and mull over your purchase for a couple of days before making your final decision. If you still want to buy it, you should consider the financing offered by the store, since the interest rates are usually lower.
Never, ever, under any circumstance lend out your credit card to someone. It could be a very good friend that is in need of one thing or another, but it is not a very good idea to lend it out. If your friend charges more than you had expected, you may be stuck with over-limit charges as well as a huge credit card bill.
Do not assume that your interest rate is concrete and unchangeable. Credit card issuers have several interest rates they can use at their discretion. If you are unhappy with your current interest rate, call the bank or company and ask for a lower one.
Don’t use a fax machine to transmit your credit card information. The fax could be viewed by anyone and could sit in the fax machine for days and give anyone the opportunity to view your private information. If any of those people is a thief, you are in trouble. It exposes you to fraud and all of its associated problems.
Be honest on your credit card application. Many credit card providers will not verify your annual income and will just give you a credit card with a high credit limit. This high credit limit could lead to you getting into huge amounts of debt.
Remember that your interest rate is negotiable. You can usually negotiate your rates with your creditor. You can probably get a low APR if you have good credit and have been making all of your payments on a timely manner.
Credit cards could be helpful if they’re used properly. Keeping yourself as debt free as possible and upholding a solid credit score is possible when you apply the tips from this article. When you accomplish this, your cards stay available to make purchases when you need to make them.