Are You Using Your Credit Cards Too Much? Check Out This Advice!
Posted at by CreditWiz on category Credit CardsWith so many consumers falling into the trap of overspending, consumers should get as much advice as possible on financial management. Although credit cards are quite useful, they could also cause you debt. Keep reading for great advice on the best way to use your credit cards.
You may want to consider keeping a couple of credit card accounts open at any given time. Having two or three cards will help you to improve your credit rating. However, opening too many is a mistake and it can hurt your credit score.
Create a budget for your credit cards. You need a budget for the money you make; therefore, your credit should be included in it. Credit cards should not be viewed as “extra” money. Know how much you have allotted each month and keep a close eye on your spending to ensure you stick to it. Adhere to that budget, and pay your balance in full each month.
Understand fully the terms and conditions of a credit card before you apply for it. You might find the annual fee, interest rate or other details are more costly than you originally thought. The only way you can fully comprehend a credit card policy, is by reading every inch of fine print.
When it comes to your credit card, do not use a pin or password that is simple for others to figure out. Never use your middle name, one of your children’s names or dates of birth as a password because the information is easily obtained by someone who sets their mind to it.
Be careful when you use credit cards to make purchases online. Prior to placing personal card data online, be certain that you are accessing a secure site. Secure sites protect sensitive information. Also never respond to an email that asks you for a credit card number as this is likely fraudulent.
All of us have been there. The amount of junk mail and credit card offers you receive, sometimes gets annoying. There are times where you’re in need of a new credit card, but usually you decide to let it pass. Whenever you discard this type of mail, you need to destroy it. Don’t just throw it away because a lot of the time these pieces of mail contain personal information.
Never believe that a credit card’s interest rate is fixed. Credit card companies are competitive and can change their interest rates if they wish. If you are unhappy with your current interest rate, simply call your credit card company and ask for a lower rate.
If you are shopping around for secured cards, stay away from prepaid cards. In reality they are debit cards, which means they don’t report to any major credit agencies. Lots of these cards charge extra fees too, and they are nothing more than a checking account really. Pay a deposit and get an actual secured card that will help better your credit.
Never put your credit card details in a fax to someone, ever. A fax may sit in a person’s inbox for a while which exposes your card number to anyone in the office. Any one of the workers in the office could steal it. This exposes you to credit card fraud and various other issues.
You should destroy all credit cards for any closed accounts you have. Do not just leave it lying around or let your children use it as a toy. If the card falls into the wrong hands, someone could reactivate the account and leave you responsible for unauthorized charges.
As stated before, consumers often feel alone in the world of finances, and that can put them at risk for credit cards with high interest rates! This article has given you information on how to proper utilize your credits cards and manage your daily spending.