Tips To Help You Choose A Credit Card Wisely
Posted at by CreditWiz on category Credit CardsAnyone can build credit, while managing their finances, with a credit card. Understanding the cards is important, so that a consumer always makes educated choices. The following article discusses some of the best basic credit card information for consumers.
Never use your credit to buy things that are out of your price range that you cannot pay off. While it is okay to use your card for something that you know you will be able to afford to pay in the near future, you should avoid impulse and high-ticket purchases until you can save enough money to truly afford them.
Before using your credit card online, check to verify that the seller is legitimate. Call the toll-free or other phone numbers on the website to see if they work, and avoid buying from merchants that do not list an address on their website.
Never give your card number out over the phone. It is always a mistake to give out your confidential information to anyone over the telephone as they are probably scammers. Make it a point to only give your credit account number to trusted businesses when you have originated the call. Never give any personal information to anyone who calls you. Regardless of who they claim they are, you have no way of verifying it if you did not call them.
Everyone has been there. You receive yet another credit card offer in the mail. Not everyone wants a credit card, but that doesn’t stop the mail from coming in. When you’re tossing out the mail you should tear it up first. Many of these offers contain your personal data, making trash a common source of information for identity thieves.
When you open a credit card account, try to keep your account open for as long as possible. Once you open a card, keep it open and use it regularly; don’t constantly switch credit cards. The longer your positive credit history is with a creditor, the better your credit score. Part of building credit is keeping accounts open if possible.
Unless you know and trust the company with whom you are dealing, never reveal your credit card information online or over the phone. If you receive an offer that requests for your card number, you should be very suspicious. There are a lot of scams that people try to use to collect credit card numbers. Protect yourself by remaining diligent.
Go through the credit card accounts you have had and think about closing the ones you don’t use anymore. If you close them, that will stop anyone from making unauthorized charges with them. Even if your account still has a balance on it, it can be closed. Just keep making the payments until the cards are paid off.
Use cards that you do not want to lose. If you do not use your cards, creditors will close the account. You have to use your credit cards occasionally so that your creditors do not close the unused accounts. Do not forget to pay off the balance in full to avoid interest charges.
If you are thinking about doing a balance transfer or taking advantage of a low introductory rate, always be sure to read all the fine print. Fully understand what happens when the introductory period ends. It is easy to suffer with high interest rates that have been overshadowed by great introductory offers. Fully understand what the card entails when you sign up for it.
As suggested earlier, credit cards can be useful tools for building credit and managing money. Knowing the differences between cards is key, because it facilitates wiser choices. Having a good understanding of the basics related to credit cards can help consumers make smart decisions in using their credit cards.