Credit Card Tips You Should Not Ignore
Posted at by CreditWiz on category Credit CardsMany problems can be created by wasteful spending and the overuse of credit cards. Credit card use is nothing to be afraid of. In fact, they can be very helpful, especially when you wish to purchase something without using cash. The article below contains useful advice on credit cards.
Do not close credit card accounts until you understand the impact it may have. Many times, closing an account leaves a negative mark on your credit record, and should be avoided, even if you do not plan to ever use the account again. Furthermore, work on keeping open the cards you have had the longest.
A minimum payment is there in order for the company to milk money from you for a greater length of time. This is why you should always pay some amount over the minimum due. Avoid paying interest as much as possible in the long run.
Set a credit card budget. Many people budget their income and cash, and credit spending should be included as well. It is unwise to consider credit as being some additional, unrelated source of funds. Set aside money each month that you can use to pay for credit purchases. Stick to that, and pay it off each month.
Always make any credit card payments on time. High fees become the norm when you pay your credit card after the due date, and you really want to avoid those fees. Furthermore, it is common for card issuers to increase interest rates, which means that every expenditure will be more expensive going forward.
Keep a close eye on any changes to your terms and conditions. In today’s society, many companies will change their conditions or terms at frequent intervals. In many cases, the changes that you should really know about are buried deep in legal jargon. This is why it is important to always pay attention to the fine print. Do this and you will never be surprised by a sudden increase in interest rates and fees.
Make certain you do not request credit cards through the mail if your mailbox doesn’t have a lock. A lot of people that admit to stealing credit cards say they got them out of unlocked mailboxes.
Monitor your credit score. Having a credit score that’s about 700 is what a lot of companies consider the limit for good credit. Boost or maintain your credit score by using credit appropriately. By having a score of seven hundred or higher, you will get the best offers and you will have the lowest rates at the same time.
Call your lender if you are unhappy with the interest rate on your credit cards. Request that they reduce it. If, after speaking with a retention team member, you are still unable to get a reduction, start looking elsewhere for a better rate. Once you are able to establish some credit with the new card, switch all of your business to them.
Avoid prepaid debit cards when considering secured cards. This is because they are classified as debit cards, so they will do nothing to help your credit score improve. Prepaid debit cards do little for you besides provide you with an additional checking account, and many prepaid debit companies charge high fees. Put down a deposit instead, and acquire a secured credit card.
Never provide your card number online or over the phone without really knowing the company that you are in contact with. If you are receiving an unsolicited offer that is requesting a credit card number, be doubly suspicious. There are a lot of shady people out there and they often try to get credit information over the phone. Therefore, it is important to protect yourself and remain diligent.
The advice you have read here can help even the most credit-shy consumer conquer their fears. If you use a credit card responsibly it can actually be extremely useful. Just keep in mind the advice in this article and you are going to be just fine.