Credit Card Tips And Info That Will Help
Posted at by CreditWiz on category Credit CardsFor too many people, credit cards can be a source of headaches and frustration. With the right advice, living with credit cards isn’t all that bad. This article will give you a lot of suggestions that will allow you to have a good experience with a credit card.
It is a good practice to have more then one credit card. If you can pay your bill in full each month, this number of cards will help you to improve your credit score. 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.
Minimum payments are designed to maximize the credit card company’s profit off of your debt in the long run. Try to make a larger payment than just the minimum. Paying off your balance faster helps you avoid expensive finance charges over the life of your debt.
Keep a budget you are able to handle. You should not max out your card just because a certain amount is available on your card. Understand the amount you can realistically afford each month so that you will not incur interest charges.
Don’t use an easy pin for card, or you are setting yourself up for trouble. It is a huge mistake to use something like your middle name, date of birth or the names of your children because this is information that anyone could find out.
When you use a credit card online, keep a copy of your sales receipt. Keep the receipt so that you can review your credit card bill, to ensure that the online company did not charge you the wrong amount. If it differs, file a dispute of charges with the company as soon as possible. This is a fantastic way to be sure that you’re never being charged too much for what you purchase.
It is highly recommended that your credit card limits remain less than 75% of the total money you make every month. Also, you should never allow yourself to have a limit that exceeds your monthly salary. If you do, pay that card off and ask for a limit reduction. Otherwise, you may soon be paying a lot more interest than you can afford.
A secured credit card may be an option you want to look into if your credit score is in trouble. Cards like these need a collateral. Think of it as borrowing against your own savings account, and paying an interest for that right. It is probably not the most appealing option in the world but sometimes you have to do this to repair a poor credit score. Just remember that you still need to ensure the company you’re dealing with is honest. These companies can offer you unsecured cards in the future, which can make your score higher.
While secured cards can prove beneficial for boosting your credit, don’t use any prepaid cards. These cards are debit cards, and as a result, they are not reported to the large credit bureaus. A lot of them charge additional fees and they are nothing more than checking accounts. Instead of using a debit, your best bet is to put some money into an account and get yourself a secured card to use. This will help you beef up your credit score as an added bonus.
People usually become disappointed and frustrated by credit card companies. However, many of these frustrations can be prevented with a little due diligence in selecting the right card. By using the advice you’ve learned here, you will be able to make knowledgable credit decisions and make your credit cards work for you.
