Solid Information About Using Credit Cards Wisely
Posted at by CreditWiz on category Credit CardsUsing credit cards wisely can help you accumulate points that can be used on incentives like vacations. It can also relieve any stress you may have. Other people who don’t use credit cards wisely deal with unexpected, large bills. You can be part of the first group by using the tips in this article to obtain the best cards and use those you already have wisely.
Read the fine print. Before accepting any credit card offer ensure you know all the details. Be aware of how much interest you’ll pay and how long you have for paying it. Research extra fees, as well as grace periods.
Always have a budget for your credit card spending. You should be following a budget anyway so make sure to add your credit cards to it. You don’t want to get into the habit of thinking of credit cards as extra money. Therefore, it is important to set a budget stating the amount of money you can charge to your credit card. Remain committed, and repay that amount religiously every month.
Practice wisdom when it comes to using your credit cards. One rule of thumb is to use your credit card for purchases that you can easily afford. Be sure you can immediately pay the bill when it comes prior to charging an item. Carrying a balance makes it easier to rack up debt, and more difficult to pay off the total balance.
When shopping for a new card, look for one that offers points, has a low interest rate and comes with no annual fee. There are plenty of cards you can get that don’t have an annual fee associated with them, so they are pretty much a waste of your money.
Keep an eye on your credit score. Most creditors think of 700 as the lowest number you can have while still being considered to have good credit. Wisely use your credit in order to maintain this level or to reach this level if you aren’t this high yet. When you have a score that is around 700, or even higher, then you can get good credit offers that have minimal rates.
Keep a list of credit account numbers and emergency contact numbers for the card lender. Keep this list in a safe place, like a safety deposit box, away from each of your credit cards. The list will prove invaluable if you lose your cards or if they are stolen.
One effective suggestion for credit card users is to not make a payment on your credit card right after you charge an item. Instead, pay the balance of the card in full as soon as you get your statement. This will reflect better on your payment history and give you a better credit score.
Refrain from closing your credit accounts. Although you may think this will improve your credit, it could actually hurt your credit score. The reason is because the amount of available credit you have is lowered and that will be balanced against what you owe.
Contact your creditor about lowering your interest rates. Some credit card companies will reduce the interest rates for customers that have consistently maintained a positive relationship by making timely payments. It could save you a lot of money and there is no cost to asking for it.
If you have had a secured card that has stayed in good standing for awhile, a company may be willing to offer you a credit card that is unsecured. Offers will also begin to appear in the mail. Re-evaluate your situation before deciding on which card you will accept.
Do not carry all your credit cards on you all the time. Only the ones that you may need daily. Even if you have multiple cards, it is wise to have only the ones you use most often. As a general rule, these will be the charge and gas cards you use every day. Keep only those on you, and secure the rest at home.
Credit cards without reward programs can still help you manage your financial life. Those that do not use their credit cards wisely will benefit from the strategies written here. Use what you have learned from the tips above to help you to become a happy credit card owner.