Tricks On How To Properly Use Credit Cards
Posted at by CreditWiz on category Credit CardsLet’s face it, in this day and age, consumers need all the advice they can get on managing their finances and avoiding the pitfalls presented by over-spending! Credit cards are often quite helpful, but they can be dangerous in that using them incorrectly can lead to debt. The following article will help you with some great tips on how to wisely use credit cards.
Review the specific terms of the offer. If you have a pre-approved credit offer, or if someone claims they can assist you in getting a card, gather all the details first. It’s very important to understand what interest rates and payment schedules you’ll be dealing with. You should also ensure you have a complete understanding of any fees as well as grace periods associated with the credit card.
Keep the company that your card is through in the loop if you anticipate difficulty in paying off your purchases. If you’re going to miss a payment, the credit card company may agree to adjust your payment plan. This could prevent them from having to report late payments to major reporting agencies.
If you want to get a credit card but do not have established credit, consider finding a co-signer. Co-signers can be siblings, parents, close friends, or anyone with established credit. They must be willing to sign stating they will pay the balance due on the card if you do not pay it. Doing so is a good way to start building credit.
Make sure you completely understand credit card terms before you sign up for the card. It is possible to discover rates that are higher than you expected. Read all the fine print in order to make certain that you understand the card policy completely.
Read emails and letters from your credit card company upon receipt. Card issuers have the ability to adjust fees and interest rates, provided they let you know about it in writing. If you don’t wish to be subject to those changes, you can cancel the card.
Those that want a new card should only look at those without annual fees that have lower interest rates. Given the sheer number of cards on the market that do not have annual fees, acquiring cards that do require such fees is unnecessary.
Select a password for your card that’s tough to identify for someone else. You don’t want anyone who can go through your trash to easily figure out your code, so avoiding things like birthdays, middle names and your kids’ names is definitely wise.
Do not use credit cards to make purchases that are not affordable. You might want a flat-screen television, but that doesn’t mean that you should use your credit card to buy it. You will pay a lot of interest and monthly payments that you could not pay for. Leave the store and return the next day if you still want to buy the product. If you still wish to make the purchase, check to see if in-house financing through the store offers a better interest rate than charging it to your card.
Do not allow anyone to use your cards. Though you may have a close associate who desperately needs help, it is still not advisable to lend out a card. This can lead to excessive charges, over the limit fees, and other problems if your friend happens to charge more than they should.
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. Hopefully you can use the information about credit card best practices you just rea to adjust your spending habits.