Considering Credit Cards? Learn Important Tips Here!
Posted at by CreditWiz on category Credit CardsCredit cards can be very convenient. The following article will give you advice on how to use your credit cards without getting into trouble.
It’s good credit practice to consistently maintain two or three open credit cards. This can help you to build a credit history and improve your credit score, as long as you are sensible with the use of these cards. You should have no more than three open credit cards. If you have more than three credit cards, it may be more difficult to qualify for a loan.
Pay off your whole card balance every month if you can. Ideally, credit cards are only for convenience and should be paid completely at the end of a billing cycle. Using credit cards in this way improves your credit score and prevents you from having to pay finance charges.
Create a budget to which you can adhere. You should not think of your credit card limit as the total amount you can spend. A solid budget lets you stay on top of how much you can afford to pay each month to eliminate your balance and avoid interest charges.
As you fill out a credit card receipt, make sure to put something in every space. Draw a pen line through the “tip” area, so that an employee cannot write something in the space and give themselves a tip. Carefully check your statements to assure your purchases match the amount on your statement.
Everyone has had a similar experience. You get another piece of unsolicited “junk mail” urging you to apply for a shiny new credit card. You might be looking for a new card, but then again, you might not. When you throw out the mail, rip it into small pieces. While it may be tempting to just toss them in with the rest of the garbage, these solicits contain personal information, and you should take the time to protect yourself.
Have a list you keep of all your credit card accounts by number as well as the lender’s contact numbers. Stash this is a safe place like a safe, and keep it separate from the credit cards. Use this list to contact your credit card issuers if your credit cards are ever lost or stolen.
You can ruin your credit score if you have any credit card debt than you cannot afford to pay back. This can make it difficult for you to do things like finance a car or rent an apartment in the future. You can find it hard to even find a job or insurance at times.
Check into all fees and charges that go along with a card for which you are thinking of applying for, not just the interest rate and APR. There are oftentimes charges for service, applications, cash advances and many other unexpected fees.
Don’t lie about your income when applying for credit cards. The limit given to you by your credit card company may be too high if they don’t verify your income – this can lead to overspending.
Watch each of your credit transactions carefully. A good way to do this is to get mobile alerts. When you monitor your credit, if anything appears out of the ordinary, you can fix it immediately. If you see anything questionable on your account, contact the credit card company immediately, and also contact the police if necessary.
Choosing your credit card first every time is a mistake, even if that card offers cash back rewards and travel points. It is true that you might eventually gain the reward or free airline ticket you are pursuing. However, those tickets may end up costing you an a ghastly amount after racking up charges and interest rates.
This article was written with the intention of providing you with reputable credit card information, hopefully, it has served its purpose. It is impossible to exercise too much caution when it comes to credit card usage, and it is common for people to only realize their mistakes after the fact. Remember the tips you found in this article to improve your credit card experience.