Making The Most Of Your Credit Cards
Posted at by CreditWiz on category Credit CardsIt is often hard to find a good credit card offer in all of the bad ones. Some cards are easier to get, while others have great rewards programs, and still others give low interest rates. What can a consumer do? This article will help you understand common credit card offers so you can make a more informed choice.
Never charge items on credit cards that cost far more than you have to spend. It can be tempting to buy large items on credit, but this practice can quickly get out of hand, leaving you with more debt than you can pay off. So, pass up the big purchases unless you have the cash.
Always report any fraudulent charges that you notice on your credit cards as soon as possible. By doing this, you will help the card company to catch the person responsible. This will also allow you to be sure that you aren’t responsible for the charges they made. Most fraudulent charges can be reported with a quick phone call or email to your credit card company.
Take note of all your credit card expenditures, so that you are sure that you are spending within your means. It does not take much to let your spending get out of control, so commit to recording your spending in a spreadsheet or on paper.
A way to make sure you are not paying too much for certain types of cards, be sure that they do not come with high annual fees. If you are the owner of a platinum card, or a black card, the annual fees can be up to $1000. If you do not need the perks associated with these cards, don’t pay the annual fee.
Understand your interest rate. It is very important to understand what the interest rate is before you get the credit card. If you are unaware of the number, you might pay a great deal more than you anticipated. You may find it very hard to pay off your debt each month when high interest charges are added to your balance.
Do not forget to factor in your credit cards when creating a budget. Many people think a budget is only for the bills you owe; however, you should also set a budget for credit card usage. Try not to think of credit cards as a source of extra money. Come up with an amount that you are able to use for your credit cards each month. Stick with it and pay it every month.
Always pay off credit cards on time. Not making your credit card payment by the date it is due can result in high charges being applied. Also, the majority of card companies will increase your rate, which means all future purchases cost you more money.
To spend less money, try looking for a lower interest rate. If you are a long-time customer, and have a good payment history, you might succeed in negotiating a more advantageous rate. All you may have to do is make a phone call in order to obtain a better rate and save money.
If your credit is damaged, consider applying for a secured credit card. A secured credit card require a balance for collateral. With a secured card, you are borrowing against your money and then paying interest to use it. Not ideal, but it may be the only way to repair your credit standing. Stick with reputable companies when applying for a secured card. They might eventually offer you a card that is unsecured which is even better.
When consumers open their mailbox, they see many credit card offers. Sorting through these is hard. By doing some research, and understanding what is going on with credit cards, they become more simple. This article should give consumers the information needed to make smart decisions with credit cards.