Don’t Keep Your Credit Cards In Your Wallet
Posted at by CreditWiz on category Credit CardsGood credit cards can often be a needed lifeline when there is a financial problem. Do you have a serious need right this moment, but lack the cash to resolve it just now? No worries at all! A credit card can make these types of purchases easier. Do you need to boost your credit score? It is simple with a credit card! Read on for many useful tips on how to take advantage of a credit card.
You may want to consider keeping a couple of credit card accounts open at any given time. This helps build up your credit, particularly if you pay your cards in full monthly. Do not over-do it. Having more than three credit cards can concern a lender looking at your credit report.
Check your balance carefully when your statement arrives. Be sure you know your card’s limit before making purchases. If you happen to charge an amount over your limit, you will face fees that are quite costly. It is going to take longer to pay down the balance if you keep exceeding your limit.
Always use your credit card wisely. Make sure that you limit spending on credit cards and when you make purchases have a goal for paying them off. If you use the card for something, ensure you can pay it back immediately. If you hold onto your balance, your debt will keep increasing, which will make it much more difficult for you to get everything paid off.
Resist the temptation to loan credit cards to people. Even if a close friend really needs some help, do not loan them your card. Doing so can result in over the limit fees if your friend charges more than you allowed them to.
Check your credit score regularly. Most credit card issuers want borrowers with credit scores of 700 or above. Put your credit to work to maintain that score or to help you reach it. With a credit score of at least 700, you will receive the lowest interest rates and best credit offers.
If you ever get a phone call that asks for a credit card number, you should never give out that information. Many scammers will use this ploy. Only give your credit card number to businesses that you trust. Do not give your credit card information to anyone who calls you. No matter who they claim to be, you do not know who they are.
Do not close active credit accounts. While you may think a closed account will lead to a credit score rise, this is, in fact, incorrect. This is the case because closing a credit card account results in a lower amount of total credit for you, and that means that you will have a lower ratio between your total credit and the amount you owe.
Avoid prepaid debit cards when considering secured cards. In reality they are debit cards, which means they don’t report to any major credit agencies. Most of them charge you with extra fees, and they only function as another checking account. Get a proper secured credit card by parting with a few hundred bucks for the deposit. These proper secured credit cards will help you to improve your credit rating, as they are reported to the major credit bureaus.
As you can see, credit cards have plenty of uses. They have multiple uses, from purchasing items in a checkout line to boosting someone’s credit score. Use this article’s information cautiously when charging items to your credit card.