Need A Credit Card? Use This Information
Posted at by CreditWiz on category Credit CardsAlthough credit cards can be a great financial tool, they can also be a huge frustration for many people. If you have the right advice, you can easily deal with credit cards in a hassle-free way. Use the tips in this article to help you learn how to live responsibly with credit cards.
Before closing any credit card, understand the impact it will have on your credit score. Sometimes closing credit cards can leave negative marks on credit reports and that should be avoided. In addition, keep the oldest credit card accounts open because a major factor in your overall credit score is the length of time since credit was established.
Be vigilant of all purchases, so you can make sure not to overspend. If you don’t, you may forget how much money you have already spent on your card- write it down!
Many credit cards offer significant bonuses for signing up for a new card. Make sure you are aware of all the details associated with such bonuses. For instance, it could be listed in your contract that you can only receive a bonus if you spend X amount of money every period. If this is something you’re not comfortable with, you need to know before you enter a contract.
Many credit cards come with rewards or loyalty accounts. Choose a credit card whose loyalty program offers you something valuable. The extra cash back or free flights and hotel rooms can be great bonuses and money-savers.
Do not pick a pin number or password that could easily be picked out by someone else. Using something familiar, such as your birth date, middle name or your child’s name, is a big mistake since this information is readily available.
Do not use public computers to make purchases with a credit card. Your card information will be on these computers, such as the ones in the public library or in coffee shops. When you leave your details behind on such computers you expose yourself to great unnecessary risks. Don’t make purchases from any computer that’s not your own.
Resist the temptation to loan credit cards to people. Even if you’re talking about a relative, you can never trust someone enough to deal with the potential consequences. Lending out a credit card can have negative results if someone charges over the limit and can hurt your credit score.
Keep yourself updated on the status of your credit score. 700 is generally the minimum score necessary to be considered a solid credit risk. Use the credit you have in a smart way so that you can stay at this level. If you’re not there yet, you can use it to get there. Once your score hits 700 or above, you will get all the best offers of credit with the lowest interest rates.
Read the fine print to determine what conditions may affect your interest rate as they can change. Credit card companies are competitive and can change their interest rates if they wish. If your interest rate is higher than you would like it to be, make a call and ask the bank to reduce it.
Become familiar with all of the new consumer credit laws enacted over the past few years. A credit card company is prevented by law from retroactively increasing rates, for example. You also cannot be billed twice in one cycle. Research the law. There are two major changes that have recently been enacted pertaining to credit card laws which may have a significant impact on you, so it is wise to be aware of them.
As this article just went over, a lot of people get angry or disappointing when dealing with a credit card company. It is much easier to have realistic expectations if you thoroughly understand a credit card before applying. Make the most of this article’s advice and make the most of your credit experiences.