The Best Advice Around About Credit Cards
Posted at by CreditWiz on category Credit CardsCredit cards can be useful in a lot of ways because they enable people to buy items without them having to pay for them instantly. Prior to applying for a new credit card, it is important to understand some key information in order to keep yourself out of debt. Continue reading this article for some good credit card tips.
A co-signer is a good way to get your first credit card. Anyone who has good credit can be your co-signer. A co-signer states they are willing to be responsible for the debt if you default. Doing so is a good way to start building credit.
Be careful when using credit cards. Try not to spend too much and only make purchases you’re able to pay back. If you use the card for something, ensure you can pay it back immediately. It is very easy to create too much debt that cannot be paid off at the end of the month.
When doing an online transaction with your credit card, save a copy of the transaction receipt. Keep that receipt until the credit card bill comes in the mail and verify that all figures match up. In the case of erroneous charges, get in touch with the merchant and dispute the amount right away. By keeping up with your payments and receipts, you’re ensuring that you won’t miss an overcharge somewhere.
As you fill out a credit card receipt, make sure to put something in every space. If you are not giving a tip, put a mark through that space to avoid someone adding an amount there. Also, check that your purchase amounts match the amounts on your statement.
It is possible that your interest rate can be reduced, so do not think that you are stuck with the rate you were given. The credit card business is a competition. Therefore, all card companies have varying interest rates they can utilize. If you do not like your current rate, get in contact with your bank and request for a change.
Do not purchase prepaid cards. Prepaid cards are essentially debit cards, so your activity with them does not improve your credit. Lots of these cards charge extra fees too, and they are nothing more than a checking account really. Make a deposit to get a secured credit card which reports to credit bureaus and can improve your credit rating.
It is important to be knowledgeable of credit card legislation passed in recent years. For example, a credit card company cannot increase your interest rate retroactively. It is also against the law to double-cycle your bill. Knowing these laws and others like them will protect you from unfair business practices. There have been two major changes in the laws. You should read up on them to familiarize yourself.
Accurate recording of your monthly credit card spending is important. Be aware that making impulsive buys can add up quickly. You may not notice until your statement arrives that you have a large amount to pay and not enough income to pay it!
Always check all the extra fees that your credit card carries so you don’t have any surprises. There are sometimes charges like application fees, service charges and cash advance fees, that may make your card not worth having.
If for some reason you have to make a late payment or miss a payment on your credit card and your interest rates get raised, call the company to see if you can get the interest reduced back to the original rate. When you make late payments, it is likely that your card issuer will increase your interest rate and charge additional fees. If you have a history of making timely payments, you may be able to have some of these charges reduced with a simple phone call.
Managing your credit with a credit card can be considered a privilege, not something you have a right to have. If you are responsible, you will be rewarded with better credit offers at good rates. If not, you will find that your offers of credit dry up. Responsible credit card owners pay their credit card bill each month and track every charge.
Using credit cards carefully provides many benefits. Keeping yourself as debt free as possible and upholding a solid credit score is possible when you apply the tips from this article. When you accomplish this, your cards stay available to make purchases when you need to make them.