Suggestions And Tips For Responsible Credit Card Usage
Posted at by CreditWiz on category Credit CardsTry finding a credit card that lets you earn points towards products, services and vacations. Other people who don’t use credit cards wisely deal with unexpected, large bills. If you wish to use credit cards in a responsible, effective manner, keep reading in order to gain some great tips for smart credit management.
Always report any fraudulent charges that you notice on your credit cards as soon as possible. By doing this, you can help your credit card company catch the thief who is making these unauthorized charges. In addition, this is the best method of ensuring you aren’t responsible for the charges. The minute you notice a charge that could be fraud, an email or phone call to the credit card provider can commence the dispute process.
Keep a record of your credit card purchases to avoid creating more debt than you can pay for. If you don’t, you may forget how much money you have already spent on your card- write it down!
Never sign up for a credit card without learning its interest rate. This is especially true before signing up for a new card, so read the fine print or ask the right questions to determine the interest rate you would be paying with the card. Choosing a card with a high interest rate will cost you dearly if you carry a balance. You may find it very hard to pay off your debt each month when high interest charges are added to your balance.
If it is possible, you should pay off your balances in full every month. In a perfect world, you shouldn’t carry a balance on your credit card, using it only for purchases that will be paid off in full monthly. Your credit score benefits from the credit card use, and you won’t have finance charges if paid in full.
A cosigner can help you obtain a credit card if you have yet to establish credit. Co-signers can be siblings, parents, close friends, or anyone with established credit. They must agree to pay the balance if you are unable to. This is a perfect way to start building your credit.
Develop a budget for your current lifestyle. Just because you are allowed a certain limit on spending with your credit cards doesn’t mean that you need to actually spend that much every month. Avoid interest payments by knowing what you can afford and paying off your card every month.
Do not use credit cards to buy items that you cannot afford. If you want a big ticket item you should not necessarily put that purchase on your credit card. You will be paying much more than the initial cost due to interest. Leave the store, think over it for a day or so, and then make your decision. If you decide that it is still worth purchasing, look into the retail store’s financing offers.
To cut your interest payments, do not hesitate to phone your credit companies and ask for better interest rates. If you have a good payment history with your creditor, you might be able to get better interest rates. All you may have to do is make a phone call in order to obtain a better rate and save money.
Never, ever, under any circumstance lend out your credit card to someone. It’s a bad idea to lend them out to anyone, even friends in need. Doing so can cause over-limit charges when someone else charges more to the credit card than you said he could.
While it is a good idea not to build up a large balance on your credit card, you should resist the temptation to jump online and pay off purchases the instant that you make them. Instead, pay the balance as soon as you receive the statement. Your credit card payment history will look better and it will raise your credit score.
Credit cards can be used responsibly to enrich your financial life regardless of any perks, rewards or points they may offer. Those who do not mindfully use their cards wisely with some of the sound strategies presented here might have momentary gratification, but also long term stress from bills. Just remember to implement the tips you have read above to get in the situation that best suits your needs.