Useful Tips On The Use Of Credit Cards
Posted at by CreditWiz on category Credit CardsBecause of problems that can occur with credit cards, many people are scared to get one. There is no reason to fear owning a credit card. In fact, credit cards are useful when you want to buy something but don’t have cash on you. In this article, you will discover some excellent advice about credit cards.
Only open retail store cards if you shop there on a regular basis. Even applying for a card with the store will reflect badly on your credit score if you’re not accepted, and there’s no sense in applying if you’re not a regular shopper. If you’re declined by a few retail chains, for example, you can actually hurt your credit rating in the long term.
You should try to pay your credit card balance off monthly. In general, it’s best to use credit cards as a pass-through, and pay them before the next billing cycle starts, instead of as a high-interest loan. When you keep balances off your cards, you avoid interest and other finance charges. Making use of the cards helps build up your credit score, too.
Understand the terms and conditions for any credit card prior to agreeing to the use of the card. You might later find that your fees, payments and interest rates are different than what you expected. The only way you can fully comprehend a credit card policy, is by reading every inch of fine print.
Make sure to sign your cards as soon as your receive them. At some stores, cashiers will verify your signature on the card against the signature you sign to the receipt as an added security measure.
Never use a password or pin code for your credit card that is really easy for people to figure out. Using something like your initials, middle name or birth date can be a costly mistake, as all of those things may be easy for someone to decipher.
Do not give your card information over the phone unless you know and trust the company involved. The same goes for using credit online. Be especially suspicious of unsolicited offers that ask for your information. There are a lot of shady people out there and they often try to get credit information over the phone. Keep your credit card information save by being alert for scams.
Never lie about how much money you make just so you can apply for a card with an extremely high limit. Some companies do not verify your income and they will give you a card with a higher limit, which may result in you charging more than you can afford to pay back.
One subtle trick you can use to avoid making unintentional credit card charges is to place your debit cards in front of your credit cards in your wallet. Doing so helps to focus your spending on your debit card and prevents inadvertent use of a credit card in a rush.
Be sure that you are able to manage a credit card wisely before you open an account. Some people just can’t help spending beyond their means. Such people should avoid getting credit cards. Opening a credit card account can put your financial future at risk if you don’t have self-discipline.
Use cards that you do not want to lose. If you do not use your cards, creditors will close the account. The only method for making sure your accounts stay open is to utilize your cards. It is also important to pay your accounts in full to remain debt-free.
If you are transferring the balance from one card to another, at a lower introductory interest rate, make sure you understand the terms and conditions. It is important that you know what charges you will be up for once the honeymoon period is over. Many times low introductory rates revert to high interest rates once the introductory period is over. Understand all of it before you sign anything.
The advice in this article will likely help any consumer overcome their fear of credit card use. If you use common financial sense, there is no reason to fear using a credit card for purchases. Just use the advice that you read and you should not have any problems at all.