Take A Look At This Credit Card Advice
Posted at by CreditWiz on category Credit CardsToday, consumers need as much advice as possible when it comes to managing finances and avoiding pitfalls caused by overspending. Credit cards are a great service when used properly. Read on to learn some of the best practices to use when dealing with credit cards.
Ensure you understand how closing an account will affect your credit score. Many times it leads to lowering your credit score which you do not want. Furthermore, work on keeping open the cards you have had the longest.
Always report any fraudulent charges that you notice on your credit cards as soon as possible. If you do this, your credit card company will have a good chance of tracking down the thief. Additionally, you will avoid being responsible for the charges themselves. Most fraudulent charges can be reported with a quick phone call or email to your credit card company.
Always review the fine print on your credit card disclosures. Before accepting any credit card offer ensure you know all the details. Know the details about interest, like the rate and dates. Additionally, you may wish to know about their fees and any applicable grace periods.
Many credit card offers include substantial bonuses when you open a new account. Make sure that you’re fully aware of what’s in the fine print, as bonuses offered by credit card companies often have strict requirements. Often, you must spend a particular amount within a certain time period; think about whether or not you can do what the terms require prior to getting excited by the offer.
Always make sure there is not a yearly fee attached to any credit card that offers rewards or perks. Annual fees for black or platinum cards can range from $100 to $1000 depending on the card’s exclusivity. If you don’t really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
Make it your goal to never pay late or over the limit fees. Both of these are pretty large fees and going over your limit can put a blemish on your credit report. Be very careful to never spend above the limit on your credit card.
Stay current on changes to your user terms or conditions. Companies often come out with new terms and conditions, even more frequently than in the past. A lot of times, these changes are not very clear and concise. Read everything to learn if there are any new fees or rate adjustments that will affect you.
Do not lend out credit cards under any circumstance. Even though a good friend might have a need, it is never a good decision to lend it to anyone. That can lead to charges for over-limit spending, should your friend charge more than you’ve authorized.
If you’re not pleased with the interest rate, ask your bank to change it. Make it clear to your card provider that you must have a more favorable rate. If they cannot provide one, it’s time to look for a card with a better rate. Once you find a company that is better for you, switch to them.
Once you decide to open a credit card account, keep it open. You should avoid switching to different accounts, if possible. The total amount of time you have had credit available to you is a factor in your credit score. An important part of keeping a good credit history is keeping your credit accounts open, even if they are paid off.
Don’t give credit card numbers out, online or over the telephone, without knowing that the company you’re dealing with is trustworthy. When someone calls you, be very wary of giving out your credit card number. You can’t be sure they are who they say they are. There are a lot of shady people out there and they often try to get credit information over the phone. Be aware and keep yourself protected.
As stated before, consumers often feel alone in the world of finances, and that can put them at risk for credit cards with high interest rates! Properly used, credit cards can improve your credit rating, increase your buying power, and save you money.
