Tips For Being A Wise Credit Card Owner
Posted at by CreditWiz on category Credit CardsMany people have despised credit cards since they were first invented. Credit card accounts, like many things, can be hard to maneuver if you do not have good information. Featured below is a collection of tips that will increase your knowledge of credit cards.
Always check the fine print. Make sure you know exactly what is being offered in that pre-approved credit card before you take advantage of it. It’s important to know what your interest rate is and will be in the future. Also, make sure to research any associate grace periods and/or fees.
You should develop a budget for your credit card usage. Many people think a budget is only for the bills you owe; however, you should also set a budget for credit card usage. 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. Restrict your credit spending to that amount and pay it in full each month.
If you are looking to open a credit card though you do not have any type of established credit, finding someone to co-sign for you can do the trick. Anyone who has good credit can be your co-signer. Of course, they are putting themselves on the line, by becoming responsible for your credit. This is a fine way to start building up your credit score with a credit card of your own.
Always use your credit card wisely. Do not overspend and only buy things that you can comfortably afford. Prior to buying anything with your card, be sure that it can be paid of when you get your statement. If you carry a balance, your debt will grow and the total balance will be harder to pay off.
Resist the temptation to loan credit cards to people. A close friend may need something, but it isn’t a smart idea to lend them yours. It can lead to over-limit charges if your friend should put more on the card than you had authorized them to.
Be certain you are buying from a legitimate vendor before you use a credit card to buy anything on the internet. Try out any telephone numbers they have listed, and if there is no address listed for the seller, treat this with suspicion.
Get in contact with your card company to see if they are willing to decrease your interest rates. There are companies which will reduce the interest charged, if they’ve got a long-standing relationship with them. It can save you a lot of money and asking will not cost you a cent.
Do not lie about the amount of money that you make in order to apply for a credit card that has a much higher limit. A lot of companies won’t take a look at your income and they’ll hand out cards with bigger limits. This might end up making you charge too much, so it will be impossible to pay it back.
Stay away from any card that imposes an annual fee. Usually, those with higher credit scores do not have to get cards with annual fees. These annual fees can end up costing you more than what you can earn through any sort of reward scheme offered by the credit card provider. Take the time to do the calculations. Credit card companies don’t advertise annual fees, as they are usually a hidden cost. Find your reading glasses. Then consider if any fees charged outweigh the cards benefits. Usually, they don’t.
Keep a close eye on transactions made with your credit card. Signing up for text or email alerts can be a great way to accomplish this. This allows you to find out about and question suspicious activity immediately. If any suspicious activity is in your account, ensure you get in contact with your bank and the police if you must.
As discussed previously, frustration and confusion can often come with attempting to understand your credit card accounts. However, with the right knowledge and some helpful tips, it can be easier to manage credit cards than you ever realized. You can better handle your credit cards with this article’s advice.