Looking For Credit? Check Out These Tips For Selecting The Right Card For You!
Posted at by CreditWiz on category Credit CardsConsumer advice is valuable with regard to credit cards. Read further for advice on learning how to properly use credit cards and avoid common problems as well. It is important for consumers to understand how to choose, use and pay the balance of a credit card.
Don’t use cards to buy items you could never afford. Take an honest look at your budget before your purchase to avoid buying something that is too expensive.
If you know that someone made a charge on your card without your permission, report it as soon as possible. If you do this, your credit card company will have a good chance of tracking down the thief. Also, by notifying the credit card company immediately, you can ensure that you aren’t in any way responsible for the charges. A quick call or simple email may be all that is required for you to report a fraudulent charge.
Try to pay off the balance on all credit cards every month. In general, it’s best to use credit cards as a pass-through, and pay them before the next billing cycle starts, instead of as a high-interest loan. The credit usage builds a good history and by not carrying a balance, you will not pay finance fees.
Create a credit card spending limit for yourself other than the card’s credit limit. Budgeting your income is wise, and including your credit in said budget is even wiser. You don’t want to get into the habit of thinking of credit cards as extra money. Set aside a specific amount that you can safely spend on a card every month. Stick to that budget and pay it in full every month.
Make sure you are fully aware of your card agreement’s terms. Many companies consider you have accepted the terms when you initially use the credit card. Be aware of all of the “fine print” that comes with your credit card!
Don’t use credit cards to buy items that are too expensive for you to afford. A credit card isn’t the magical solution to getting the flat screen TV or new computer that you have always wanted. 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. Just leave this store, think about it for a couple of days, and then make a decision. If you decide that it is still worth purchasing, look into the retail store’s financing offers.
When you charge something online, print a copy of the receipt. Retain the receipt until the bill arrives so you can ensure that you were charged the proper amount. If the amount is not correct, contact the vender and dispute the charge immediately. Doing so helps to prevent overcharges on purchases.
Monitor your credit score. Good credit requires a score of at least 700. This is the bar that credit companies set for trustworthiness. Strive to maintain or reach that level by using your credit properly. At a score of 700 or higher, you’ll receive the best credit offers with the lowest rates.
Do not fax your credit card number to anyone. Many times a fax may sit for hours in a basket. This could allow many people unwanted access to your information. Anybody in the office is a potential thief. This leaves you wide open to fraudulent charges.
After you close a credit account, be certain to physically destroy the card. If you just toss it aside, it may end up being used fraudulently by someone else.
Avoid signing up for credit cards that have an annual fee. The higher the credit score, the better the chances of obtaining a card with no annual fee. Annual fees can serve to erase any benefits the card may offer. Therefore, it is important to weigh the pros and cons before applying for a credit card with an annual fee. Many companies do not mention the fees and you have to search the fine print to find them. Make sure you are aware of all the costs associated with using your credit cards. See if the fees outweigh the benefits. Most of the time they don’t.
As you are no doubt aware, it is all too easy to find yourself in over your head regarding credit cards. A few too many cards, a few too many expensive purchases, and before you know it, you are in trouble! Hopefully, this article will help you to avoid credit card problems and keep yourself financially healthy1