Don’t Let Credit Cards Take Over Your Life
Posted at by CreditWiz on category Credit CardsCredit cards can help people build up their good credit and really manage their finances efficiently. Understanding the terms of each card is key, so that people can make good choices. You will be able to make better choices and safely use your credit cards after reading the basic information in this article.
Should you notice a charge that is fraudulent on any credit card, immediately report it to the credit card company. This gives the credit card companies the most opportunity to catch the person responsible. This is also the best way to make sure that you are not held responsible for these charges. Fraudulent charges can usually be reported by making a phone call or sending an email to the credit card company.
You should only open up retail credit cards if you plan on actually shopping at this store on a regular basis. Every time you try to open a card, this action is recorded. A large number of inquiries that is present on a credit report can decrease your credit score.
Credit card companies set minimum payments in order to make as much money from you as they can. Whenever you can afford to, send in payments that exceed the minimum amount. This will help you avoid pricey interest fees in the long term.
Before signing up for a card, be certain that you understand all of the terms associated with it. You might find the annual fee, interest rate or other details are more costly than you originally thought. Pay very close attention to the terms to make sure you completely understand the card policy.
Do not lend out credit cards under any circumstance. Although you might be tempted to help out a good friend, lending out your credit cards is not a good idea. You could be struck with expensive over-limit charges by your credit card provider if your friend accidentally overspends.
It is commonly thought that high limits on credit cards should never exceed 3/4 of a consumer’s monthly pay. If your balances exceed one month’s pay, try to repay them as quickly as possible. This is because your interest will just keep growing bigger and bigger.
Having outstanding balances that exceed your ability to pay may ultimately result in harm to your credit record. Should this occur, you will have great difficulty when you apply for an apartment, insurance or anything else, including quite possibly a job.
If you are in good credit standing, but looking at high interest rates, try calling the credit card company to see if they will reduce the rate for you. Often, they will agree. That can save you money each month you carry a balance.
If you are considering a balance transfer, or an introductory rate credit card, make sure you read the fine print. You should especially pay attention to the terms following the introductory period. In general, after the introductory period has ended, these credit card providers will start to charge you extortionate interest rates and administration fees. Make sure you are aware of what you are signing up for when getting the credit card.
As said earlier, credit cards can be good and they can be bad. They can help to build a good credit score, but they can also get you in trouble. Knowing how the various cards work is important. You can make more educated choices this way. Having a grasp of credit card basics can benefit consumers in that way, helping them to make smart credit decisions.