Looking For A Student Credit Card? Try These Tips!
Posted at by CreditWiz on category Credit CardsIf used correctly, credit cards can garner some fantastic perks from the points you earn, like vacations and low-stress finances. There is nothing worse than returning from a well deserved vacation to a large credit card bill awaiting payment. Keep reading to learn how you can be smart and get the most from the use of your credit cards.
Try to keep at least two, but not more than three, credit lines open simultaneously. This will help you build one’s credit score, particularly if you pay your bill in full. That said, if you go all out and open four or more cards, it may look bad to lenders when they evaluate your credit reports.
Many people have credit cards, however very few use them correctly. While some situations understandably cause debt, too many people abuse credit cards and go into debt. It is ideal to pay off credit card balances every month. Using credit wisely and keeping low balances will help to improve your credit score.
Set a budget when it comes to your credit cards. It is important to budget your income, and it is equally important to budget your credit card spending habits. You do not want to think of your credit card as extra money. Determine how much you can spend monthly on credit cards. Restrict your credit spending to that amount and pay it in full each month.
Make sure to sign your cards as soon as your receive them. The signature on the back offers protection against fraudulent purchases because the cashier verifies that the customer’s signature matches the signature on the card.
You should limit your search for new cards to those that don’t have annual fees and that offer low interest rates. There are many options that don’t have annual fees, so it is silly to choose a card that does.
Keep an eye on your credit score. Most companies consider a credit, or FICO, score of 700 to be the cutoff for good credit. Put your credit to work to maintain that score or to help you reach it. When you have a score that is around 700, or even higher, then you can get good credit offers that have minimal rates.
If anyone asks you to give them your credit information or card number over the phone, never give it to them. This is used by scammers all the time. Only allow those that you trust to have your credit card number. Never give any personal information to anyone who calls you. No matter who they claim to be, you do not know who they are.
Educate yourself on recent laws affecting consumers using credit cards. A credit card company is prevented by law from retroactively increasing rates, for example. They are also not allowed to engage in double-cycle billing. Check out the laws thoroughly. To find out more, look for information on the CARD and Fair Credit Billing Acts.
You can really damage your credit score if you use a credit card to make purchases for more than what you can pay for with cash. A poor credit score can hurt your chances of buying a car, renting an apartment and getting good insurance rates. It can even make it harder to get the job you want.
Credit cards without reward programs can still help you manage your financial life. People who don’t use their cards properly may be gratified in the short term but suffer long-term stress over bills. Use the tips from this article so you avoid the pitfalls associated with credit cards.