Simple Solution To Dealing With Credit Cards
Posted at by CreditWiz on category Credit CardsLet’s face the truth; today, people need advice about managing their money and preventing pitfalls due to overspending! Credit cards can either be an excellent tool for building your financial life or a huge liability that can wreak havoc on your finances. The best thing to do is carefully peruse all the fine print.
Do not consider using a credit card from a retail store unless you shop there regularly. When a store runs a credit check to see if you qualify for a card, it shows up on your credit report, even if you ultimately decide not to open an account. Too many inquiries into your credit history will be a red flag to possible lenders and will lower your overall credit score.
Monitor your credit card purchases to ensure you are not overspending. It can be easy to run up a huge debt without realizing it, unless you keep tabs on how much you’re spending.
Double check for annual fees when signing up for premium credit cards. Annual fees for high end cards can be very high depending on how exclusive they are. If it is not necessary for you to have an exclusive card, avoid fees by not getting one.
Understand the credit card agreement before you use that card. The first use of your card is perceived as an acceptance of its terms by most credit card issuers. Although some of this agreement may be in fine print, it is very important to thoroughly read all sections.
Read any communication about your credit cards, whether online or in the mail, right away. Credit card companies can make changes to annual fees, interest rates and membership fees by advising you in writing. If you don’t wish to comply, you are allowed to cancel that credit card.
You should never jot down your password or pin number, regardless of the circumstances. It is vital that you know your password, and that you’re the only one who has access related to it. If you write down a PIN or password, especially if you put it in your wallet with your card, anyone can access it.
Never give your credit card information out over the phone. Scammers often employ these shady tactics. Give out your number only if you are the one who made the call. Do not give them to people who call you. It doesn’t matter what they say, there is no way to know who they really are.
Although it can be tempting to make payments right after purchasing something, avoid this. Rather, wait for your statement to come and then pay the entire balance. Doing so will help you build a stronger payment record and boost your credit score.
Be sure to go over the laws on credit cards that have been passed recently. As an example, newer laws prohibit credit card companies from making any rate increases retroactive. It’s also against the law for them to bill more than once in a cycle. Know what the laws are. The Fair Credit Billing and the CARD Act are two of the major changes that have recently been made.
Any credit card you don’t use should be cancelled. You are making yourself a likely victim of fraud if you choose to keep them open. You may also be charged an annual fee by keeping accounts open.
Remember that you can always contact your credit card company directly and attempt to negotiate a new annual percentage rate if what you’re paying now is too high. In many cases, they’ll be more than willing to oblige. Any reduction in interest rate can really add up to huge savings for you in the long run.
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! The best ways to use credit cards has been covered in this article and hopefully, you have found this information very useful and applicable to your everyday spending habits.