Practical Tips To Manage Your Credit Cards Wisely
Posted at by CreditWiz on category Credit CardsCredit cards can be extremely dangerous. By spending too much, you are opening yourself up to high borrowing costs and interest rates. But, if you used properly and responsibly, a credit card can have its perks. Many enjoy the convenience of a credit line and benefit from their credit company’s reward programs. Continue reading to learn the many benefits of credit cards, as well as how to avoid their many pitfalls.
Report any fraudulent charges on your credit cards as soon as you see them. This will give the company a greater possibility of catching the perpetrator. In addition, this is the best method of ensuring you aren’t responsible for the charges. You can usually report fraudulent activity through a quick telephone call to your credit company.
Know the interest rate you are getting. It is crucial that you know the rate of interest prior to getting a credit card. If you take a card with a high interest rate, you could pay two or three times the cost of your original purchase over time. If you end up paying more, it is possible that you will be unable to repay the balance every month.
If you are having trouble making your payment, inform the credit card company immediately. Companies will sometimes set up payment plans for their customers. This could prevent them from sending late payments to the large reporting agencies.
If you want a card but don’t have credit, you might need a co-signer. A parent or other relative may be willing to be a co-signer. Of course, they are putting themselves on the line, by becoming responsible for your credit. Doing this is an ideal way to obtain a first credit car, while also building credit.
Carefully read through all the conditions and terms of your card agreement before using the card. Most credit card providers will consider you using your card to make a transaction as a formal agreement to the terms and conditions of their policies. The print on the agreement may be small, but it is important to read it carefully.
If you want a brand new credit card, try limiting the search to those with lower interest rates and that do not have annual fees. It doesn’t make sense to pay an annual fee when there are many credit cards that charge no fee.
Never make use of public computers for making purchases with a card. Your credit card number could be stored in the auto-fill programs on these computers and other users could then steal your credit card number. It is a big mistake to put your personal credit card information on a public computer or network. When making purchases online, use your own computer.
Keep a close watch on your credit rating. The limit to what credit card companies consider good credit is a credit score of 700. Try your best to reach and maintain that score. At a score greater than 700, you will get the best rates and offers.
It is easy to underestimate how much you owe on your credit card if you use it frequently at restaurants and grocery stores. This is because those charges can take longer to appear on your credit card statement, and so you think you have spent less than you actually have. Because of this, you may not know your true account balance.
When leaving the house, just bring the credit cards you frequently use. Think about which of your many cards you use most often. These cards usually include a gas card and one major credit card. Only place those in your wallet, and leave the rest safe and secure at home.
Credit cards offer great benefits when you learn to use them strategically and responsibly. These benefits include convenience, rewards and peace of mind. Use the knowledge you gained to manage your credit card, and build good credit.