Smart And Proven Ideas For Credit Card Management
Posted at by CreditWiz on category Credit CardsCredit card consumer advice is useful in this day and age. This article will help you know more about credit cards and dodging the troubles associated with them. 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.
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. Not only does this increase your credit ranking, but when you pay every month, you also increase your line of credit. But, if you have more than three cards, lenders may not view that favorably.
Make your credit payment before it is due so that your credit score remains high. A late payment can do a number on your credit score, and can also require you to pay pricey fees. Using automatic payment features for your credit card payments will help save you both money and time.
Always know the rate of interest on all your credit cards. It is extremely important before you sign on to getting that credit card that you must know the interest rate. Choosing a card with a high interest rate will cost you dearly if you carry a balance. A higher interest rate will make it more difficult to pay off your debt.
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. Co-signers can be siblings, parents, close friends, or anyone with established credit. It’s important to know that being a co-signer means that person is liable for the credit card bill in full if you don’t pay it. This is a perfect way to start building your credit.
When you first receive your credit cards, be sure to sign them right away. People who avoid this step leave themselves open to identity theft if the cards should be stolen. Many cashiers will check to make sure there are matching signatures before finalizing the sale.
Your interest rates are not set in stone, and you can do something about getting them lowered. Since credit card companies compete with one another, they all have the option of changing your interest rate to another one of their standard rates to keep you satisfied. You can contact the band and request a lower interest rate, if you think it is too high.
Many experts suggest that your credit limit on a given card should never exceed three-quarters of your monthly income. If your level of debt exceeds your monthly salary, then you need to focus your efforts on paying it down right away. This becomes critical because the interest charges will continue to push your balances higher and higher.
Ask your bank to change your interest rate if you do not like it. If they will not do so, it might be time to shop for a new card. When you find a company that fits your needs better, make the switch.
Don’t lie about your income to get a higher limit credit card. Some companies don’t bother to check income and they grant large limits, which may be something you cannot afford.
If possible, avoid cards with annual fees. People with high credit scores are more likely to be offered cards with no annual fees. High fees will negate any benefits a card offers. Therefore, it is important to weigh the pros and cons before applying for a credit card with an annual fee. Credit card providers don’t usually advertise annual fees, instead they include them in the small print. Break out those reading glasses. Look at the small print to determine if the fees of using the card outweigh all of the benefits. Usually, they don’t.
As stated in the beginning of this article, it’s just way too easy to get into financial hot water when using credit cards. A few too many cards, a few too many expensive purchases, and before you know it, you are in trouble! The above article has given you advice to stay away from credit card issues, so your credit will remain healthy.