Simple Ways On How To Make The Most Out Of Your Credit Cards
Posted at by CreditWiz on category Credit CardsGood advice on managing credit cards can be hard to find. The following article is designed to educate you on the use of your credit cards and how to avoid problems. Many people have cards, but don’t know properly use them.
If at all possible, pay off your credit card in full each month. Ideally, credit cards are only for convenience and should be paid completely at the end of a billing cycle. Using them will increase your credit rating and paying them off right away will help you avoid any finance fees.
Set a credit card budget. It is important to budget your income, and it is equally important to budget your credit card spending habits. Never view credit cards as extra money. Set aside an amount of money that you can pay each month on your credit cards, and follow through each month with the payment. Remain committed, and repay that amount religiously every month.
Keep a close eye on your balances. Also be aware of what your credit card spending limit is and adhere to it. If you exceed your limit, then the fees are going to add up making your balance a lot harder to pay off. If you continually keep your balance over the limit, the fees will continue to add up and you will have difficulty getting your balance paid down.
Never, ever use your credit card to purchase something that you cannot afford. A credit card isn’t the magical solution to getting the flat screen TV or new computer that you have always wanted. It costs a lot of interest, and that makes monthly payments pretty much impossible. Exit the store and mull over your purchase for a couple of days before making your final decision. If you still plan to buy it, the store’s in-house financing usually offers lower interest rates.
Do not document your password or pin number. You need to just remember what your password is so no one else can steal or use it. Writing down your PIN, especially if you store it with your card, can put your account in jeopardy if the information falls into the wrong hands.
Never, ever, under any circumstance lend out your credit card to someone. Though you may have a close associate who desperately needs help, it is still not advisable to lend out a card. This can lead to excessive charges, over the limit fees, and other problems if your friend happens to charge more than they should.
Never reveal your credit card account number over the phone to someone who has called you. Scammers use this trick all the time. You should never reveal your credit card number to businesses you do not trust, and even with your own card company you should only supply your number if you initiated the call. Don’t give them to random phone callers. Although someone may say they are from a certain company, there is honestly no way to tell if they are being truthful.
Do not open and close credit cards frequently. Switching to another account should only be done in specific circumstances, as it is a detrimental event otherwise. The length of your account history with an individual creditor is factored into your credit score. A good way to build your credit is to keep your accounts open.
Unless you know and trust the company with whom you are dealing, never reveal your credit card information online or over the phone. Be extra cautious if the offer requiring your information was unsolicited. There are tons of scams that want your card number. Be diligent and protect yourself.
If at all possible, stay away from credit cards that have annual fees. Usually, those with higher credit scores do not have to get cards with annual fees. These annual fees can end up costing you more than what you can earn through any sort of reward scheme offered by the credit card provider. Sit down and figure out the math for the long term. Credit card companies don’t talk about the fees, but they do include them in the small print. Use a magnifying glass if the print is too small. Take a look at whether the fees outstrip the probable benefits. Many times, they don’t.
As you have seen, it can be all too easy to cause problems for yourself by using credit cards improperly. Too many credit cards, too many shopping sprees and soon, you will be in big financial trouble. This article should, hopefully, teach you some ways to avoid the trouble that can find you regarding credit cards, so you can remain financially healthy.