Great Advice For Using A Prepaid Credit Card
Posted at by CreditWiz on category Credit CardsWith all of the credit card horror stories out there, it is no wonder that some people are afraid of credit cards. Credit cards should not instill fear. Credit cards are often the perfect way to make purchases that you would not want to make with cash. You will find beneficial credit card advice in the article that follows.
To preserve a high credit score, pay all bills before the due date. Making your payments late will negatively affect your score and cost you additional fees. If you set up an auto-pay schedule with your bank or card lender, you will save yourself money and time.
Check whether there is an annual fee attached to your credit card, to make sure you aren’t overpaying for a premium card. Annual fees for high end cards can be very high depending on how exclusive they are. If you don’t have to have a card that’s exclusive, avoid fees and keep that in mind.
Keep a watchful eye on your balance. Be aware of what your limit is so that you never exceed it. Exceeding the limit will result in significant fees. Try contacting your credit card company for an increased limit if you consistently go over your current limit.
Don’t buy anything using a credit card on a public computer. Your credit card number could be stored in the auto-fill programs on these computers and other users could then steal your credit card number. It is a big mistake to put your personal credit card information on a public computer or network. Don’t make purchases from another person’s computer.
Have a running list with credit card account numbers and lender’s emergency contact phone numbers. Place it in a secure place, like a deposit box, away from your other credit cards. This list is going to help you if you ever get robbed and they get stolen or if you lose them somewhere along the way.
Avoid paying for restaurant checks and grocery bills with credit, as they can take a while to appear on your statement, which will make you underestimate what your true balance is. You could actually end up spending more than you realize because your balance is higher than it looks.
Always track the purchases that you’re making with your credit card. Remember that impulse purchasing can increase your balance rapidly. 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.
Do not lie about the amount of money that you make in order to apply for a credit card that has a much higher limit. Companies that offer these cards may not verify income, which means you will get a high limit card, but you may spend more money and incur more debt.
If you spend some time proving yourself responsible with secured credit cards, the card company may be ready to let you have an unsecured one. At that time, you’ll see mail offers start coming in. Re-evaluate your situation before deciding on which card you will accept.
If at all possible, stay away from credit cards that have annual fees. Usually, annual fee cards are only given to higher credit score clients. Annual fees can serve to erase any benefits the card may offer. Perform the necessary calculations. Credit card issuers do not tout the annual fees; they are usually found in the fine print. Therefore, it is important to take the time to completely read the fine print. Learn if the benefits outweigh the fees. Most of the time they don’t.
Anyone who is scared to use their credit card should feel better after reading this article. Credit cards can be a useful tool when used correctly, and should not be feared. Just understand that credit cards can get you in trouble, but they are also a great financial tool. Good luck.