Proven Advice For Anyone Using A Credit Card
Posted at by CreditWiz on category Credit CardsCredit cards are used around the world by people hoping to achieve the life they want to live. A person has more flexibility with their finances when they have a credit card. Keeping this in mind, it’s crucial that you carefully pick your credit card and use it wisely. In the following paragraphs, you’ll find essential tips on using your credit cards responsibly.
If you cannot afford to pay cash for something, think twice about charging it on your credit card. It is acceptable to use your credit to make purchases that you will be able to pay off later, but do not make large purchases that could put you in a financial bind.
Make your credit payment before it is due so that your credit score remains high. A payment that you make too late, will lower your credit score, while costing you a lot of money. You can save a lot of trouble by setting up automatic payments.
Carefully utilize your credit cards. Don’t buy anything that you know you can’t afford. Only use your credit cards for purchases that you know you can pay in full the following month. A balance that is carried makes it easier to create a higher amount of debt and makes it more difficult to pay it off.
Avoid ordering your credit cards via mail if your mailbox doesn’t lock. It is common for thieves to steal credit cards from unlocked mailboxes. To prevent this, make sure your credit cards are mailed only to secured mail boxes.
Never, ever, under any circumstance lend out your credit card to someone. It’s a bad idea to lend them out to anyone, even friends in need. That can lead to charges for over-limit spending, should your friend charge more than you’ve authorized.
Be careful if you buy things online with your credit card. Don’t input any credit card details unless you are certain that the site is completely secure. Secure sites keep your card information safe. Additionally, ignore those emails that want your credit card information, because these are attempts to steal your credit identity.
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. Make a request to your bank to change your current interest rate if you don’t like it.
A good thing to remember is that you should not immediately make a credit card payment after you make a charge. Rather, wait for your statement to come and then pay the entire balance. Your payment history will look better, and your credit score will improve.
It is important that you understand all the new laws governing credit cards. Credit card companies are prohibited from imposing retroactive rate increases, for instance. They are also never allowed to double-cycle their billing practices. Take the time to learn the governing credit card laws. The CARD and Fair Credit Billing Acts are the two main legislative changes that have been instituted recently.
Once you’ve closed your account associated with your credit card, remember to destroy the card completely. If you just toss it aside, it may end up being used fraudulently by someone else.
Only carry the credit card that you will need that day. You might have five cards or more, but consider which of those cards you use most frequently. These can include a gas card and daily charge cards. Leave your other cards at your residence where they are safe, and you can get to them easily if your wallet or purse is lost.
Many times, credit cards will open up new opportunities and allow for some breathing room with monthly spending. When they are used the right way, they can be great assets, but when used without care, the cardholder can find himself in a world of misery. The above article had great advice to help consumers make wise credit card choices and avoid negative consequences.