Get Some Good Advice On Using Credit Cards Here
Posted at by CreditWiz on category Credit CardsCredit cards can be a useful tool. They allow a consumer to make a purchase and defer payment. However, you need to know the basics of wise credit card usage so that you do not end up buried in debt. Read on for some great tips on how to be smart about using your credit cards.
When looking over your statement, report any fraudulent charges as soon as possible. Immediate action you take gives your credit card company an upper hand in catching the thief. This will also limit the risk of you being held accountable for their charges. A simple phone call is usually all it takes to report fraudulent charges or put a hold on a stolen card.
To verify you are not paying for premium features you don’t need on your credit card, see if the card company charges an annual fee for it. Depending on how exclusive the card is, a platinum or black card may carry a fee of $100 to $1000. The best bet is that if you do not need a premium credit card, avoid them and do not pay the fees.
Talk to the credit card company if you are having financial problems. If it is possible that you will miss your next payment, you may find that a card issuer will help by allowing you to pay less or pay in installments. This might prevent them reporting late payments to reporting agencies.
If you have not established a credit history and are interested in obtaining a credit card, it may help to obtain a co-signer. A parent or other relative may be willing to be a co-signer. Your co-signer will be legally obligated to make payments on your balance if you either do not or cannot make a payment. This is one of the best ways to land your first card and start building a good credit score.
When doing an online transaction with your credit card, save a copy of the transaction receipt. Keep this receipt so that when your monthly bill arrives, you can see that you were charged exactly the same amount as on the receipt. If the amount is not correct, contact the vender and dispute the charge immediately. By keeping up with your payments and receipts, you’re ensuring that you won’t miss an overcharge somewhere.
Leave no blank space or room for anyone to write anything when you sign a credit card receipt. Always cross out the tipping line, so an amount that you did not authorize is not added in later. Keep a copy of the receipt so that you can verify that the amount on your statement matches it.
Never let anyone else use a credit card that is in your name. Even if the friend is a very good one and they are really in need of the card, it just isn’t a smart idea to lend yours out. Doing so can cause over-limit charges when someone else charges more to the credit card than you said he could.
Credit card use is a lifesaver sometimes, but only when used wisely. The basic tips provided in this article should have given you enough information, so that you can use your credit card to purchase items, while still maintaining a good credit score and staying free of debt.