How To Properly Use Your Credit Card
Posted at by CreditWiz on category Credit CardsIt is never a bad idea to take good advice, particularly when credit cards are involved. The proper use of a credit card can help ensure you maintain a positive credit score. The problem with most is that they have credit cards and lack the knowledge to use them prudently. Debt is the end result of this issue.
You want to stay away from both late fees and over the limit ones. Both are high fees and going over your limit will also damage your credit score. Watch carefully and don’t go more than your credit limit.
When you receive any credit card correspondence, whether in the form of a letter or email, take the time to read it. Credit card companies are allowed to make certain changes to fees, regular interest rates and annual membership fees, as long as they give you written notice of the changes. If you don’t wish to comply, you are allowed to cancel that credit card.
Keep a careful eye in case the terms or conditions of your agreement change. Often, you will find credit companies changing their terms or conditions on a regular basis. Often, the changes that most affect you are buried in legal language. It is especially important to look for changes in rates and fees.
When you purchase items on the Internet using your credit card, ensure you retain a copy of all the transaction records relating to it. Keep these receipts and compare them with your statement to make sure it is the correct amount. If the company did not charge you the right amount, get in contact with the company and immediately file a dispute. By keeping up with your payments and receipts, you’re ensuring that you won’t miss an overcharge somewhere.
Save money by asking credit card companies to offer you a lower interest rate on your charges. Based on your history with your credit card company and your personal financial history, they may agree to a more favorable interest rate. Simply call up your creditor and ask for a better rate.
When shopping online, use care when paying for purchases with credit cards. Prior to entering any card information, ensure the site that you are utilizing is a secure one. This will keep your information away from prying eyes. Also, disregard emails which attempt to collect credit card information.
Verify the legitimacy of an online seller before using your credit card on their site. Try out any telephone numbers they have listed, and if there is no address listed for the seller, treat this with suspicion.
It is highly recommended that your credit card limits remain less than 75% of the total money you make every month. If you have a limit higher than a month’s salary, you should work on paying it off immediately. Interest can easily grow to very large amounts that are difficult to pay off. So, pay off the accounts with the higher limits to avoid becoming overwhelmed.
Every year, ask to view your credit report and check for accuracy. Take out your card statements, and make sure those amounts equal the recorded amount of debt on your credit history.
As you have seen, it can be all too easy to cause problems for yourself by using credit cards improperly. One or two expensive purchases that you cannot afford can severely damage your credit rating and send you to the poor house. Hopefully, this guide will help you avoid problems related to your credit card.