Tips And Tricks For Using Credit Cards
Posted at by CreditWiz on category Credit CardsHaving a credit card is useful for those people that want to buy things and pay for them later. However, before you run out and open up a credit card, there is some information essential for keeping you from racking up credit card debt. Read on to find some valuable information about credit cards.
Try to keep at least two, but not more than three, credit lines open simultaneously. This will help you build one’s credit score, particularly if you pay your bill in full. But, if you have over three cards open, creditors may look upon that fact unfavorably.
If you see any suspicious charges, report them quickly. If you do so, it will be more likely that the thief is caught. This will help ensure you are not liable for any fraudulent charges against the card. It usually just takes a brief email or phone call to report fraudulent charges.
Carefully read the terms. If you have a pre-approved credit offer, or if someone claims they can assist you in getting a card, gather all the details first. Know the percent of your interest rate, as well as the length of time you will have to pay for it. Make sure to find out about grace periods and fees.
It is common for card issuers to offer big incentives for opening accounts. Be sure that you fully understand the fine print, though, because many of these cards have very specific terms that you must meet to qualify for the bonus. These terms commonly stipulate that must spend a given amount within a certain time-frame in order to qualify. If you don’t think that you can meet the terms of the offer, it might not make sense to sign up for the card.
If you only pay the minimum amount each month on your credit card, only the credit card company benefits. The monthly minimums are deliberately designed to be so low that you will be paying for years in in order to pay off your balance. In the meantime, the credit card company will be collecting inordinate amounts of interest from you. This is why you should always pay some amount over the minimum due. Don’t incur expensive interest costs over time.
Be aware of the rate of interest you are provided. It is crucial that you know the rate of interest prior to getting a credit card. You could be charged much more than you originally thought if you are not sure of the rate. If you have to pay higher balances, you might find you cannot pay the card off every month.
Check your balance carefully when your statement arrives. Make sure that you know of any credit limits that have been imposed by your creditor. If for some reason you exceed your limit, you will be liable for large fees that you might not know about. It will take longer for you to pay the balance down if you keep going over your limit.
If you desire to own a credit card without having established credit, try looking for a co-signer. A parent or other relative may be willing to be a co-signer. They need to be willing to pay for your balance if you cannot pay for it. That can be a terrific method of acquiring a first card for credit building purposes.
Credit cards can help you, if you understand how to use them wisely. The ideas in this piece have, hopefully, provided you with sufficient understanding to use credit cards regularly, but in a way that will not harm your financial future.