Great Professional Advice When Dealing With Credit Cards
Posted at by CreditWiz on category Credit CardsAlthough credit cards can be a great financial tool, they can also be a huge frustration for many people. Just like anything else, you will find it easier to deal with a credit card when you know what it entails. Read this article to learn some credit card tips.
Many people wonder if it is better to have one credit card or many. For most people, it is best to have two or three credit cards open. You can improve your credit score by managing these cards responsibly, especially if you keep from carrying month-to-month balances on the cards. Keep in mind that maintaining more than three cards may not be a good idea. It could raise doubts in the minds of lenders who look at your credit report.
Only apply for store cards with merchants you shop with often. Every credit inquiry impacts your credit score, even if you do not end up getting the card after all. Too many inquiries into your credit history will be a red flag to possible lenders and will lower your overall credit score.
Monitor your credit card purchases to ensure you are not overspending. It is quite easy to lose track of what you are using your credit card for, so you should commit yourself to keeping track of all of these expenditures in either a notebook or on a spreadsheet.
It is very important to read all correspondence from your credit card company, including emails. Credit cards companies can change their policies, fees and interest rates so long as you receive a written notice that they are doing so. Remember, if you don’t like any of the changes, you can legally demand that your credit card account is closed.
Leave no blanks spaces on any credit card receipts you sign at a store. Always strike out the tip line in order to prevent others from filling in an amount of their choosing. Additionally, check your credit statements to ensure that the recorded purchases match your expectations and your receipts.
Never let anyone borrow your credit cards. A close friend may need something, but it isn’t a smart idea to lend them yours. This can lead to overcharges and unauthorized spending.
Stay aware of your credit score. For a credit score to be seen as good by a credit card company, it will need to be at least 700. Wisely use your credit in order to maintain this level or to reach this level if you aren’t this high yet. By having a score of seven hundred or higher, you will get the best offers and you will have the lowest rates at the same time.
It is not uncommon for people to avoid acquiring credit cards because they want to give the impression that they are debt-free. Carrying just one card can help you to build credit, which becomes important when you are looking to get a mortgage or car loan. Utilize it and be sure to make your monthly payment. If you have no credit at all, lenders are not able to ascertain if you are good at debt management or not.
Restaurant and grocery charges on a charge card may take longer to show on your statement which can be deceiving when it comes to knowing the amount that you have available. This can result in more fees on your account if you spend over your limit due to the groceries or restaurant bills not posting fast enough.
As noted earlier, too often, consumers find themselves frustrated and discouraged after dealing with a credit card company. It is much easier to have realistic expectations if you thoroughly understand a credit card before applying. Use the advice featured in this article and start getting your credit cards to work for you, rather than against you.
