Credit Card Tips And Tricks To Stay Safe
Posted at by CreditWiz on category Credit CardsIt can be hard to sort through all the credit card offers you get in the mail. Some say they are pre-approved, while others offer 0% interest. Others advertise really good rewards. How can you make an informed decision? The tips presented below will teach you just about everything that you need to be aware of when considering a credit card.
It is a good practice to have more then one credit card. This will increase your credit score over time, especially if you don’t carry a balance from month to month. However, if you have over three, a lender may think that looks bad when pulling up your personal credit bureau report.
If you are looking to open a credit card though you do not have any type of established credit, finding someone to co-sign for you can do the trick. This can be a family member or friend with existing credit. This person needs to be willing to agree to paying the balance if you don’t make the payments. This is a fine way to start building up your credit score with a credit card of your own.
The moment you receive a letter or email regarding your credit card, be sure to read it right then. Credit companies can change their interest rates, fees and other account details, as long as the companies provide you with advance written notice. Remember, if you don’t like any of the changes, you can legally demand that your credit card account is closed.
We have all been there. You get another piece of unsolicited “junk mail” urging you to apply for a shiny new credit card. You might be looking for a credit card, however, it is far more likely that you are not. When you’re tossing out the mail you should tear it up first. Do not simply throw it in the trash unopened, because these solicitations often contain personal details about you.
It is possible that your interest rate can be reduced, so do not think that you are stuck with the rate you were given. Just like any other business, credit card companies are in competition with each other and have many interest rates available to them. If you don’t like your interest rate, make a call to the bank and talk to them about it.
Check with your credit card company about their willingness to reduce your interest rates. There are companies which will reduce the interest charged, if they’ve got a long-standing relationship with them. There is no fee to ask, and if it works, you will be saving a lot of money.
Make sure that you are aware of all the recent credit card law changes. For example, card companies cannot increase rates retroactively. They are also not allowed to engage in double-cycle billing. If you understand the laws, you can understand your rights as a consumer. There have been two major changes in the laws. You should read up on them to familiarize yourself.
Make sure that you are honest about your income when applying for a bank credit card. Some companies fail to verify your income but offer you a card that has a high limit. The result can be that you charge a higher amount of money than you are able to pay.
If you aren’t using a card, it is better to close it. Having cards lying around, even if you’re not using them, can lead to identity theft. It’s not worth the risk. It is also possible that annual fees will be charged when you keep open any credit card account that you do not use or need.
If you have made improvements or growth in your credit standing, ask your credit card supplier to lower your annual percentage rate. Often, they will agree. This will save you plenty each month, if you have a balance on your card.
Customers today are always getting offered credit cards and that makes it difficult to understand what they all entail. Understanding credit, and making the right choices, both become easier in time. Now that you have read this article, you have the kind of advice you need to begin making the right credit decisions.