Don’t Understand How Credit Cards Work? These Tips Can Help!
Posted at by CreditWiz on category Credit CardsHaving a credit card is of great assistance in many sticky situations. Need to buy something but your wallet is empty of cash? No problem! This situation can be resolved with a credit card. Are you attempting to improve your credit rating? The process can be simple with a credit card. Keep reading this article for great ways you can make use of a credit card.
Learn how closing the account associated with your credit card will affect you before you shut it down. Depending on the situation, closing a credit card account might leave a negative mark on your credit history, something you should avoid at all costs. It is important that you keep your oldest credit cards open, as they account for your credit history.
If you notice a fraudulent charge on your credit card, report it immediately. If you do this, your credit card company will have a good chance of tracking down the thief. It also ensures you are not responsible for any charges made on the lost or stolen card. To report any unauthorized charges to your card, either call or email your credit card issuer.
Inspect the fine print carefully. 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 how much your interest rate will be and how long you’ll have to pay it. Additionally, you may wish to know about their fees and any applicable grace periods.
To make sure you aren’t paying too much for a premium card, ensure the credit card does not require you to pay an annual fee. If you are the owner of a platinum card, or a black card, the annual fees can be up to $1000. If you don’t care about exclusivity, these cards aren’t for you.
It is important that you have a good credit score if you desire a good credit card. Your credit score is directly proportional to the level of credit you will be offered by card companies. In order to get accepted for credit cards that have low interest rates, lucrative reward schemes and low fees, you need to have a stellar credit score.
If you make credit card purchases online, do not do so from a public computer. Public computers at libraries, cafes and other places, may store your private information, making it easy for a technically savvy thief to gain access. If you put credit information into these computers, that is courting trouble. When making purchases online, use your own computer.
To cut your interest payments, do not hesitate to phone your credit companies and ask for better interest rates. If you maintain a good history with your company and have always made payments on time, you should be able to come up with a better rate. Just by making one phone call, you might save yourself some money in the form of an improved and competitive rate.
Do not write down passwords or PINs related to your credit card–ever. You have to take the time to memorize these passwords and pin numbers to ensure that only you know what they are. Writing your pin down and placing it in a similar area where you place your card is not a good thing to do.
Keep a record of your credit card numbers and the emergency contact information of your various lenders. Leave it in a safe area and keep it separated from credit cards. The list is useful as a way to quickly contact lenders in case of a lost or stolen card.
Many experts suggest that your credit limit on a given card should never exceed three-quarters of your monthly income. Taking on a card, whose limit is greater than this amount, may leave you struggling to pay the bill. This becomes critical because the interest charges will continue to push your balances higher and higher.
As you can plainly see, a credit card is used for a number of things. This includes simple things like paying for products or even paying off bills. Make use of the tips above and learn to use your credit cards wisely.