Learn To Use Credit Cards Wisely With This Great Advice
Posted at by CreditWiz on category Credit CardsBecause of problems that can occur with credit cards, many people are scared to get one. You don’t have to be fearful of credit cards. Credit cards are often the perfect way to make purchases that you would not want to make with cash. In the following article you will find some good credit card advice.
A lot of cards have sign-up bonuses. Read the fine print before signing up however, because there are often many ways you could be disqualified from the bonus. These terms commonly stipulate that must spend a given amount within a certain time-frame in order to qualify. If you don’t think that you can meet the terms of the offer, it might not make sense to sign up for the card.
The reason credit card companies have minimum payments is because this is the amount they would like you to pay so they get the most money out of you over a longer period of time. Whenever you can afford to, send in payments that exceed the minimum amount. You will save a lot of money on interest in the end.
Just like you wish to avoid late fees, be sure to avoid the fee for being over the limit too. Both are usually pretty high, and both can affect your credit report. Be sure to never pass your credit limit.
When you first receive your credit cards, be sure to sign them right away. People who avoid this step leave themselves open to identity theft if the cards should be stolen. Most merchants require that your signature matches your I.D. This can help to ensure no one uses your card unauthorized.
Do not pick a pin number or password that could easily be picked out by someone else. It is a huge mistake to use something like your middle name, date of birth or the names of your children because this is information that anyone could find out.
Keep a careful eye in case the terms or conditions of your agreement change. Now days, many credit card companies will change their terms with short notice. Often, these changes are buried in a lot of legal language. Weigh all the information and research what it means to you. Rate adjustments or new fees can really impact your account.
If you are searching for cards that are secured, steer clear of prepaid cards. These are actually debit cards, and they do not report to the major credit bureaus. Most of them charge you with extra fees, and they only function as another checking account. Put a deposit down and get a secured card that reports to the credit bureaus and helps to improve your score.
Avoid using your credit card to pay for meals at restaurants, as the charges sometimes take a while to appear on your credit card statement, so you could underestimate your available credit. That may cause you to spend greater sums of money, because you had the impression that more credit was available to you.
Keep track of the amount you spend with your credit card each month. Even inexpensive impulse purchases often add up very quickly. If you don’t keep track of how much you’re spending, you may find that you can’t afford to pay off your bill when it comes.
Never transfer your credit card numbers via a fax. A fax may sit in an office for a long time, allowing it to be seen by a number of unauthorized people. Anyone who views this fax could use your information to steal from you. If a criminal steals your credit card number, your credit could be seriously damaged.
After you have demonstrated that you can wisely handle a credit card that is secured, you may find the company will allow you to change it to an unsecured card. Also, you may receive offers in the mail. That is when you need to enter decision-making mode once again, to re-evaluate your financial situation and needs.
The advice that was in this article will lay rest to any fears that you may have in regards to a credit card. When you know how to use them properly, credit cards can be very handy, so you do not have to feel anxious. Just use the information you’ve learned here and your fear of credit cards will be a thing of the past.