How You Could Maximize Your Credit Cards
Posted at by CreditWiz on category Credit CardsCredit card purchases can yield perks such as frequent flyer miles or other discounts, if used properly. Simply charging a vacation to a credit card is not so smart because a huge bill will be waiting back home. If you prefer the perks involved with wise credit card use, keep reading for some great tips on getting the most out of your credit cards.
Don’t purchase things with credit cards that you know you cannot afford, no matter what your credit limit may be. While it is okay to use your card for something that you know you will be able to afford to pay in the near future, you should avoid impulse and high-ticket purchases until you can save enough money to truly afford them.
Make sure to keep a budget when you are using credit cards. Most people use a budget for their income, so budgetting your credit card is a great idea too. Your credit card isn’t surplus money; it’s part of what you have to pay. Figure out a set amount that you’re comfortable with setting aside to make payments on your credit cards every month. Adhere to that budget, and pay your balance in full each month.
A cosigner can help you obtain a credit card if you have yet to establish credit. This can be a family member or friend with existing credit. They must be willing to sign stating they will pay the balance due on the card if you do not pay it. This can help you get a first credit card, and start building your own credit.
Make a realistic budget to hold yourself to. Simply because a card issuer has given you a spending limit, you should not feel obligated to use the entire amount of credit available. Be aware of how much you can pay monthly so that you can do that consistently and avoid those interest charges.
Read the terms of your credit card agreement carefully before you use your credit card for the first time. A majority of companies consider your first use of the card to be an acceptance of its terms and conditions. While there may be a lot of statements in small print in the credit agreement, these statements are very important.
Outweigh the benefits of having a credit card against the costs of using it before making purchases. It is possible to discover rates that are higher than you expected. Carefully read over the fine print so that you can ensure you completely understand the policy.
If you make credit card purchases online, do not do so from a public computer. Your card information will be on these computers, such as the ones in the public library or in coffee shops. If you put credit information into these computers, that is courting trouble. Purchase items from your computer only.
Make sure that you are aware of all the recent credit card law changes. For example, no credit card company can impose a retroactive rate increase on you. You also cannot be billed twice in one cycle. Know what the laws are. The two important laws that have come into effect recently are the CARD Act as well as the Fair Credt Billing Act.
Do not give your card information over the phone unless you know and trust the company involved. The same goes for using credit online. If you’re receiving requests for your card number, be cautious. There are a lot of scams that would love to have that card number. Tell them you will call them back to be sure they are legit. Find their number yourself.
Frequent flier rewards and bonuses are something to take advantage of if the card you have offers these types of benefits. Remember to read the policy thoroughly to ensure that you can take advantage of these rewards. There might be blackout dates, which would make this reward useless. Companies cause these restrictions to be not easy to understand for obvious reasons. Companies are actually trying to prevent you from using rewards. They are just trying to get you to apply.
Credit cards can be used responsibly to enrich your financial life regardless of any perks, rewards or points they may offer. People that are not smart about using their cards will be happy temporarily, but that will not last once the debt piles up. Apply what you have learned from this article to fall into the group you would rather be a member of.