Easy Solutions To Dealing With Credit Cards
Posted at by CreditWiz on category Credit CardsIf you’ve been looking for a great way to rebuild that poor credit rating, then a credit card might just be the perfect way to do it. It is important to be educated on credit cards so you make educated choices. The following article offers some basic ideas on credit card use that any consumer can apply to their circumstances to use plastic more wisely.
Learn how closing the account associated with your credit card will affect you before you shut it down. Many times closing an account can lower your credit score and will show up negatively on your credit report. The card that makes up most of your financial history should not be closed.
To ensure that you don’t over pay for your premium credit card, check whether your card has annual fees attached to it. Depending on the card, annual fees for platinum or other premium cards, can run between $100 and $1,000. Do not get an exclusive card if you don’t need one so you will not have to worry about these fees.
Watch your credit balance cautiously. You should also be sure to know that you are aware of the limit that your creditor has given you. If you do happen to go over your credit limit, the creditor will impose fees. Furthermore, it will take you much longer to clear your credit card balance if you continually exceed the credit limit.
If you desire to own a credit card without having established credit, try looking for a co-signer. Anyone who has an established credit score can cosign, such as a friend, parent, or sibling. Your co-signer must sign a statement that makes them responsible for the balance if you default on the debt. This works great for getting a first credit card that you can use for building credit.
Never leave blank spots when you sign retail store receipts. If there is a blank for a tip, cross it out so that a tip cannot be written in after you’ve signed. Make sure your statements match the charges you make.
You have to verify the legitimacy of the seller before you make a credit card purchase on the Internet. Call vendor numbers to verify the company’s validity. If there is no physical address on the site, avoid transacting with them.
Always make certain you are monitoring your credit score. Good credit typically starts around the 700 range. Wisely use your credit in order to maintain this level or to reach this level if you aren’t this high yet. Keeping your score at 700 or better gives you the chance to take advantage of offers for the lowest interest rates.
If anyone ever asks for credit card numbers by phone, do not give out this information. This is used by scammers all the time. Only provide your number to businesses you trust, along with your card company if you call about your account. Don’t give them to random phone callers. It does not who they say they are, you still are not fully aware of who might be on the other end.
Many experts suggest that your credit limit on a given card should never exceed three-quarters of your monthly income. If your limit is higher than this amount, it’s best you pay it off immediately. This becomes critical because the interest charges will continue to push your balances higher and higher.
Be sure to go over the laws on credit cards that have been passed recently. Retroactive rate increases are one of the things that the credit companies are restricted from imposing. They also cannot bill using a double-cycle system. Study the laws and keep up with the changes. Two primary changes that have occurred in recent years involve the Fair Credit Billing Act and the CARD Act.
As was said before, consumers can benefit from the proper use of credit cards. Knowing the details of each card is of the utmost importance, as ignorance can breed debt. Having a good understanding of the basics related to credit cards can help consumers make smart decisions in using their credit cards.