How To Use Your Credit Cards Wisely
Posted at by CreditWiz on category Credit CardsGood advice on managing credit cards can be hard to find. This article was written to teach you about the proper way to use credit cards. It is important for consumers to understand how to choose, use and pay the balance of a credit card.
Keeping several lines of credit open is helpful to your credit profile. This will help you build one’s credit score, particularly if you pay your bill in full. That said, if you go all out and open four or more cards, it may look bad to lenders when they evaluate your credit reports.
Read the small print. If there are offers that allow you to be pre-approved for a card or if the person is saying you can be helped to get a card, you have to know the details before signing up. Know what the real interest rate is, if it goes up after the first year and how much time they allow for payment of it. Additionally, you may wish to know about their fees and any applicable grace periods.
Double check for annual fees when signing up for premium credit cards. Annual fees for black or platinum cards can range from $100 to $1000 depending on the card’s exclusivity. If you don’t really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
Watch your balance carefully. Be sure that you’re aware of what kind of limits are on your credit card account. Going over this limit will result in greater fees incurred. It will take much longer for someone to pay their balance down if they exceed their limit consistently.
You have to sign the back of your credit cards as soon as you get them. A lot of people don’t remember to do that and when they are stolen the cashier isn’t aware when someone else tries to buy something. A lot of stores have the cashiers make sure that the signature on the card matches the one on the receipt.
If you are seeking a new card you should only consider those that have interest rates that are not very large and no annual fees. There are many credit cards available with no annual fee, so choose one of these to save you money.
Do not use credit cards to make purchases that are not affordable. If you would like a new television, save up some cash for it rather than assume your credit card is the best option. You will end up paying a lot of money in interest charges, and the amount you need to pay every month might be too much for you. Go home to mull it over for a couple of days and then reach a rational decision. If it is still something you wish to purchase, check with the store, as their in-house financing may offer lower interest than your credit card.
When you buy with a credit card on the Internet, keep copies of your receipt. Keep the receipt in a secure location, and when your credit card bill arrives, check that the online retailer charged you the right amount for the item that you purchased. In the event of a discrepancy, call the credit card company and the retailer at your earliest possible convenience to dispute the charges. This smart technique will serve you well and ensure that you never get overcharged for your purchases.
There should not be any blank spaces left when you putting a signature on a credit slip in stores. You should draw a line through the tip line so that someone else does not take it upon themselves to write an amount in. You must also review statements regularly to verify the accuracy of charges to your account.
Discuss lowering your interest rates with the credit card companies you use. In many cases, companies are willing to lower the interest rates of customers who they have a lengthy and positive relationship with. It is free to ask and can save you a lot of money.
As you are no doubt aware, it is all too easy to find yourself in over your head regarding credit cards. Having too many cards and making too many purchases can lead to disaster. Use the information you’ve read here to become a more educated credit user and make smart financial decisions.