Take A Look At These Credit Card Tips
Posted at by CreditWiz on category Credit CardsA good credit card can be a lifeline in a number of financial jams. Are you lacking in cash, but need to make a purchase? That is not a problem. Pay with your credit card, and there is no problem. Would you like to build up your credit? A credit card makes it easy to do so. Keep reading this article for more effective ways to use credit cards.
Always monitor your balance. You should also remain aware of your credit limit. Exceeding the limit will result in significant fees. When you continue to exceed the limit, it is going to take much longer to pay it off.
If you wish to have credit cards but you have no established credit, get a co-signer. Co-signers can be friends, relatives or anyone with a solid credit history of their own. Of course, they are putting themselves on the line, by becoming responsible for your credit. This is a perfect way to start building your credit.
Always make any credit card payments on time. Credit card balances must be paid by a certain date. If this does not occur, hefty fees may be imposed. On top of that, the majority of credit card companies reward this behavior by raising interest rates, which means that anything you buy in the future will cost more money.
You have to sign the back of your credit cards as soon as you get them. A lot of people don’t remember to do that and when they are stolen the cashier isn’t aware when someone else tries to buy something. Merchants often require cashiers to verify that signatures match in order to keep your cards safe.
Don’t automatically run out and get a bit of plastic as soon as you are of age. Although many people do this, it’s in your best interest to learn more about how credit works before you make this decision. Spend a few months just being an adult before applying for your very first credit card.
Take care to read all emails and letters that come from your credit card company when you receive them. Credit card companies can make changes to your annual membership fees and things like your interest rates but they have to send you a letter explaining what they have changed. If you have an issue with these changes, you have every right to cancel your card.
Never write down your password or pin number, for any reason. Memorizing your PIN or password is essential, and it helps to ensure that only you can access your account. Recording the pin number, and keeping it where you keep your credit card, will provide any person with access if they desire.
Call your credit company and ask them if they will lower your interest rate. There may be some companies that could reduce the interest rates they charge if they know that they have a good relationship with their customers. It may save you a lot of money later and it doesn’t cost anything to ask them.
Become familiar with all of the new consumer credit laws enacted over the past few years. For example, a credit card company cannot increase your interest rate retroactively. It’s also against the law for them to bill more than once in a cycle. If you understand the laws, you can understand your rights as a consumer. The CARD and Fair Credit Billing Acts are the two main legislative changes that have been instituted recently.
Keep a running track of how much you are spending each month on your credit card. Remember that incidental and impulse buys will add up quickly. If you don’t pay attention to the amounts you put on your cards, when it is time to pay, you might not be able to afford to pay the bill.
Don’t use a fax machine to transmit your credit card information. Not all fax machines are located in secure locations, so you have no idea who could read the fax and note down your credit card details. Even a small amount of information can give other people the ability to use your card. Once they have your information, they could steal your identity, make fraudulent charges, and ruin your credit.
There can be no doubt that credit cards are versatile tools. Whether you are just paying for your gas or building a solid credit history, your credit card can be used in many different ways. Keep this advice in mind the next time you use your credit card.