Are Credit Cards For You? Find Out Here!
Posted at by CreditWiz on category Credit CardsCredit cards are helpful to people who want to build credit and manage money. You should understand the advantages and pitfalls of having access to easy credit. The following contains advice on credit cards that can help people get better at using their cards, so they don’t damage their credit score and get into debt.
It is wise to have two or three different credit cards available for your use. This will help you build one’s credit score, particularly if you pay your bill in full. Keep in mind though that if you have more cards than three, this could have a negative effect on your credit score.
Only open a credit card at a retail store if you shop there often. Every application for a credit card is recorded on your credit file, even if you do not actually open up a store card account. Too many inquiries into your credit history will be a red flag to possible lenders and will lower your overall credit score.
You need to sign your credit cards the minute that they come in the mail. Many people fail to do this and as a result their cards are stolen and the cashiers are not aware of that. Merchants often require cashiers to verify that signatures match in order to keep your cards safe.
Be careful when you make online purchases. Closely scrutinize the companies you are willing to give your personal information to. Call the company to be sure they are still in business, and never buy from a store that has no street address listed.
Financial experts agree that you should not let your debt on a credit card go above a level equal to 75% of your salary each month. If your limit is higher than this, try to pay it off quickly. Interest on your credit card balance can quickly escalate and get you into deep financial trouble.
Ask your credit card provider if they are willing to reduce the interest rates associated to your credit card. There are a few companies that will lower an interest rate if they know and trust the customer due to working with them for a long period of time. This can really save you a lot of money and it never hurts to ask.
Once you do open a credit card account, aim to keep it open for as long as possible. Unless necessary, you don’t want to switch accounts around. Your credit score benefits from a lengthy, positive account history. Keeping accounts open for as long as possible will help build credit.
Always verify your charges and fees to make sure they are accurate instead of simply focusing on interest rates. Sometimes there are charges like cash advance rates, service charges and application fees that would make the card not worth it.
Never send a fax with your credit card information for any reason. Faxes sit in offices for hours on end, and an entire office full of people will have free access to all of your personal information. Your credit card number could very easily be stolen. This leaves you wide open to fraud and the financial headaches associated with it.
It is important that you are honest on how much money you make when you apply for credit. Many companies don’t check your actual income, so your limit may be way too high.
If you carry balances on multiple cards, it helps to choose one to pay off each month. Even if you have a lot of debt on your other cards, having one card paid off each month makes your credit better.
Think about receiving an unsecured line of credit from a credit card company after you have been paying down a secured card reliably. Credit card offers will probably start arriving in your mail again when you reach this point. It is then that you have to decide what to do.
Reading the above text, you can glean various aspects of credit and begin to understand how to use a credit card to your full benefit. It is important to know how cards work, so consumers can make wise decisions. Grasping the fundamental information about credit cards can assist consumers in making smart credit choices, too.