Useful Advice When Applying For Credit Cards
Posted at by CreditWiz on category Credit CardsWhen people think of credit cards, they think of spending dangers and ridiculous interest rates. If used properly, a credit card can offer benefits and more. Read this article to learn of the positive side of credit cards.
It is a good idea to have a couple of open credit cards. This can build up a credit score, and this is especially true if you’re able to pay them monthly. Do not over-do it. Having more than three credit cards can concern a lender looking at your credit report.
Exercise some caution before you start the process of applying for a credit card offered by a retail store. Every application for a credit card is recorded on your credit file, even if you do not actually open up a store card account. Repeated applications for credit could negatively affect your overall credit score.
To keep your credit score high, make sure to pay your credit card payment by the date it is due. Late payments involve fees and damage your credit. Therefore, you should aim to set up a payment schedule that pays automatically with a bank or your card company in order to save both time and money.
It is important to be wise when it comes to credit card spending. Limit your spending and only purchase things with your card that you can afford. Before any purchase, make sure you have the money to pay back what you’re going to owe; this is a good mindset to have. Carrying a balance makes it easier to rack up debt, and more difficult to pay off the total balance.
Don’t ever use passwords or pin codes that are easily figured out by strangers when setting up your credit card options. Using your birth date, middle name or your child’s name can be problematic, as it is not difficult for others to find out that information.
Do not make credit card purchases on public computers. Computers in public areas such as libraries and coffee shops will store your information. You don’t want your personal and credit card information in these computers as it can cause you trouble. Only make a purchase from your personal computer.
Do not write your password or your pin number down. The safest place for this information is in your memory, where nobody else can access it. Writing your pin number down increases the chance that someone else uses it.
Almost everyone’s been through it. Company after company sends you information about their fantastic credit card, week after week. While a credit card offer is sometimes welcome, more often you do not have need of it. When you toss the mail out, tear it up. Because most of these letters are personalized, you should not just toss your personal information into the trash for anyone to pick up.
Try to avoid closing accounts. Closing an account can hurt your credit score instead of helping. When you close accounts, you reduce how much credit you have. This then closes the gap between the credit you can borrow and how much you currently owe.
It is a mistaken action to not have credit cards at all to avoid having any debt. Carrying just one card can help you to build credit, which becomes important when you are looking to get a mortgage or car loan. Use the card, then pay the balance off every month. Not having a credit card will hurt your credit rating and prevent lending companies from being able to judge whether or not you have the ability to responsibly manage debt.
When used carefully, credit cards are very beneficial. Whether its financial flexibility, emergency funds, or accumulating rewards, credit cards can really make your life quite a bit easier. So, take the knowledge you have gained from this article and use it to manage your credit cards sensibly, and responsibly.