Solid Credit Card Advice You Can Use
Posted at by CreditWiz on category Credit CardsHaving a credit card can be a good way to build a responsible credit history. Knowing how the card works and the laws that govern it will ensure consumers make smart choices. This article will provide some basic information about credit cards, so that consumers will find them easier to use.
Only apply for store cards with merchants you shop with often. When stores submit an inquiry into your credit history for a card, this gets reported on your credit report whether or not you ultimately get the card. Excessive inquiries from those retailers on your report can drop your credit score.
Understand what your interest rate will be. It’s vital that you know what the interest rate is before signing up for a credit card. Choosing a card with a high interest rate will cost you dearly if you carry a balance. It’s always a good idea to pay off your credit card in full every month, but this may be impossible if you are paying more than you expected.
Watch your balance carefully. Know the credit limit of that card. The fees will really add up quickly if you spend over your limit. Furthermore, it will take you much longer to clear your credit card balance if you continually exceed the credit limit.
Be sure to read the fine print of the credit card terms carefully before you begin making purchases to your card initially. A majority of companies consider your first use of the card to be an acceptance of its terms and conditions. You should literally read the fine print.
Don’t ever use passwords or pin codes that are easily figured out by strangers when setting up your credit card options. It’s a bad idea to use a common password like a middle name or phone number since people could guess these.
If you don’t have a secure mailbox, don’t order credit cards by mail. Many of the credit cards reported stolen have been taken from unlocked mailboxes.
To protect your credit, never use a fax to send your credit card information. Many times a fax may sit for hours in a basket. This could allow many people unwanted access to your information. Your credit card number could very easily be stolen. This opens you up to fraudulent activity and all of the problems that come with it.
Don’t lie about your income in an attempt to qualify for a higher line of credit than you can manage. Many companies don’t check your actual income, so your limit may be way too high.
Pay the bill for your credit card expenses in full every month. If you have a credit card that has an interest rate more than 0%, then you have to pay a charge every month if you don’t pay the card off in full. By only paying the minimum required, even little bills will take a while to get rid of due to these extra charges.
Ask for lower interest rates or fees if you have missed payments. When you make late payments, it is likely that your card issuer will increase your interest rate and charge additional fees. If this is a one-time occurrence, call the credit card, and a credit card representative will often be willing to eliminate the fee.
Use only one credit card for online purchases so you are protected if you get compromised. When you use multiple credit cards you can be very vulnerable to hackers, be cautious of this.
Now it is probably clear that credit card usage can help people as they work on building up their credit history and taking control of their money. Understanding each credit card is important, because this helps make better choices. Having a grasp of credit card basics can benefit consumers in that way, helping them to make smart credit decisions.