Credit Card Tricks From People That Know Credit Cards
Posted at by CreditWiz on category Credit CardsWith so many consumers falling into the trap of overspending, consumers should get as much advice as possible on financial management. Although you can derive considerable utility from credit cards, using them irresponsibly can drive up your debts and give you more trouble than you bargained for. Read on to learn how to properly utilize your credit cards.
It’s good credit practice to consistently maintain two or three open credit cards. If you can pay your bill in full each month, this number of cards will help you to improve your credit score. However, if there are more than three cards to your name, a lender may think that’s no good when looking at your personal credit bureau report.
A lot of people don’t handle their credit card correctly. While everyone gets into debt at times, some people use the credit that they have access to in an irresponsible manner and end up in huge amounts of debt with too-high payment obligations they cannot meet. Remember to pay your credit card balance every month. This will keep your credit score high.
Use your credit cards wisely. Don’t buy everything you want, limit yourself to what is financially responsible. Before you decide to use a credit card to purchase an item, make sure you can pay off the charge as soon as you receive your statement. If you can avoid carrying a balance over from month to month, you will remain in charge of your financial health.
You don’t always want to get yourself a credit card as soon as you possibly can. Although many people do this, you should take some time to become familiar with the credit industry before getting involved. Seek advice from someone you trust prior to getting a credit card.
Only order a credit card by mail if you have a mailbox that locks. Credit card thieves have admitted to taking cards out of mailboxes that were unlocked.
You have to verify the legitimacy of the seller before you make a credit card purchase on the Internet. Call the company to talk with representatives and never buy from a merchant that does not provide a physical address.
It is highly recommended that your credit card limits remain less than 75% of the total money you make every month. If you owe more than that, you need to work hard to pay it off quickly. This happens when the interest builds up it becomes too hard to pay back.
Do not close out any accounts. This may seem like a smart thing to do when trying to raise a credit score, but it actually can damage the score. This is the case because closing a credit card account results in a lower amount of total credit for you, and that means that you will have a lower ratio between your total credit and the amount you owe.
Make note of all fees and charges of potential cards. There are oftentimes charges for service, applications, cash advances and many other unexpected fees.
Under no circumstances should you fax anyone your card number. A fax can sit in the basket at the recipient’s office for hours, or even days, allowing a whole office of people access to your credit card number. Anyone who views this fax could use your information to steal from you. It exposes you to fraud and all of its associated problems.
Having a credit card can present some challenges as well as rewards. It can provide financial flexibility, but it can also burden a card holder with excessive debt. The best way to manage and use a credit card is with some common sense and a little education, as this leads to an improved life and financial situation.