Learn How To Use Credit Cards Safely
Posted at by CreditWiz on category Credit CardsHaving a credit card can help people all over reach lifestyle goals. Having one opens doors and allows for increased financial freedom. That said, you must be wise in your credit card choices and uses. In the following paragraphs, you’ll find essential tips on using your credit cards responsibly.
Never charge items on credit cards that cost far more than you have to spend. It’s fine to use credit cards to stretch out the payments for an item you can afford, but refrain from making a major purchase that you couldn’t afford otherwise.
Try to keep at least two, but not more than three, credit lines open simultaneously. Not only does this increase your credit ranking, but when you pay every month, you also increase your line of credit. If you have too many cards open at a time, it may be difficult for you to find a loan, as too many cards on your credit report can be a red flag to lenders.
To verify you are not paying for premium features you don’t need on your credit card, see if the card company charges an annual fee for it. Platinum and black cars charge very high fees normally, that can range from one hundred dollars all the way up to one thousand dollars. More exclusive cards have higher fees. Avoid paying these fees by refraining from signing up for exclusive credit cards if you don’t really need them.
Keep a close eye on your credit balance. Also know your current credit limit so that you avoid exceeding it. If you exceed your limit, then the fees are going to add up making your balance a lot harder to pay off. This will make it incredibly difficult to repay your balance.
Set a fixed budget you can stick with. You do not need to spend the entire limit on your card, even though it’s available. It is important to stay within your budget and do not charge more than you can pay when the bill comes due.
Sometimes cards are connected to all types of rewards accounts. If you regularly use a credit card, it is essential that you find a loyalty program that is useful for you. If you use it smartly, it can act like a second income stream.
If you want to get your hands on a great credit card, watch your credit score. Credit card companies always use credit scores to determine what kinds of cards they will offer consumers. The very best cards are only given to consumers who have very high credit scores.
Keep your receipts from all online purchases. Do not throw that receipt out until you have your credit card statement in hand. That way you can compare the two and make sure charges are correct. If they did not, contact the company and file a dispute immediately. This can help you to avoid getting overcharged for any purchases.
Never, ever, under any circumstance lend out your credit card to someone. No matter who it is, it is never a good idea. It may lead to large fees if your friend spends more than you authorized.
If you are carrying a high balance on your credit card, do all you can to lower it. Having high balances on various cards can make it difficult to get credit for other purposes. When your credit rating is damaged, certain tasks become more difficult, including renting an apartment, getting finance to buy an automobile, obtaining insurance and securing employment.
Credit cards provide lots of advantages, such as opening up lifestyle and spending options. Along with the many advantages of credit cards come serious difficulties when they are abused. This article is loaded with advice to help consumers make wise decisions when using their credit cards.