Tips And Tricks That All Credit Card Users Must Know
Posted at by CreditWiz on category Credit CardsCredit cards help individuals manage their money and build a good credit history. Knowing how to use a card is important because it will allow one to make an educated decision. This article gives some basic tips of what to do when you have a credit card. It will help you make wise choices and avoid credit trouble.
Don’t cancel a card before assessing the full credit impact. There are things that can happen that negatively affect your credit score when you close a credit card account. Also, be sure that you keep a few cards open that are responsible for most of your history, credit wise.
To preserve a high credit score, pay all bills before the due date. Your score is damaged by late payments, and that also usually includes fees that are costly. Establishing automatic payments through your bank can be a great way to streamline the process and generate savings.
To make sure you aren’t paying too much for a premium card, ensure the credit card does not require you to pay an annual fee. Annual fees for platinum or black cards could be in the range of $100 to $1,000 depending on the exclusivity of the card. If you don’t need an exclusive card, keep this in mind and avoid the fees.
Keep a close eye on your balances. You also need to know how close you are to your credit limit. Exceeding your limit can result in significant unexpected fees. It is going to take a longer time to pay off the balance when you’re always going over the limit.
Always read emails or letters from your credit card company immediately. Credit card providers can make changes to their fees and interest rates provided that they give you a written notice of their changes. Read the correspondence carefully to check for any unwanted changes. You have the right to cancel your card if you don’t like these changes!
Do not apply for any credit cards by mail if your mailbox is not lockable. Credit card thieves have stated that they steal cards out of unlocked mailboxes.
When signing a credit receipt at a store or restaurant, don’t leave anything blank. Draw a line all the way through a tip line to prevent someone else from writing in an amount. Also, check your statements to make sure that your purchases match what is on your statement.
Avoid the temptation to lend your credit cards to anyone. You may trust your friend, but it can cause problems. It is never a good idea to let friends use your card. If your friend charges more than you had expected, you may be stuck with over-limit charges as well as a huge credit card bill.
Be careful when purchasing things online. Prior to placing personal card data online, be certain that you are accessing a secure site. A secure site ensures your card information is safe. Additionally, disregard any email requesting credit card info, as these are most often ploys to get at your valuable personal data.
As you have seen, credit cards can be a great help in building or re-building a person’s credit, as well as a tool to help one learn to make wise choices with their money. Knowing the terms and conditions of every credit card you have is essential. The devil is in the details. Knowing what to expect from having a credit card will help you make better choices.