Choosing A Credit Card Carefully – A Guide To The Right ChoicePosted at by CreditWiz on category Credit Cards
It can be dangerous to use credit cards; you may have heard warnings about overspending, paying high interest or borrowing too much. However, if used properly, they could offer great benefits, rewards and even peace of mind. If you want to know a little bit more about how to go about having a credit card in the right way, keep on reading!
If you notice a fraudulent charge on your credit card, report it immediately. The sooner you report it the sooner you give credit card companies and the authorities to catch the thief. That is also the smartest way to ensure that you aren’t responsible for those charges. To report any unauthorized charges to your card, either call or email your credit card issuer.
Make a realistic budget plan. Remember, your credit card’s credit limit is not a target to aim for. Be aware of what you are capable of paying and stay within that limit for healthier finances and to avoid high interest payments.
Always use your credit card wisely. Don’t buy everything you want, limit yourself to what is financially responsible. Before you buy something with your card, be certain you can pay for it in full when you get your statement. Carrying a balance makes it easier to rack up debt, and more difficult to pay off the total balance.
When looking for a new card, find one that has low interest and fees. There are plenty of cards you can get that don’t have an annual fee associated with them, so they are pretty much a waste of your money.
Never leave a blank space when signing credit card receipts. Always strike out the tip line in order to prevent others from filling in an amount of their choosing. Also, check that your purchase amounts match the amounts on your statement.
Avoid closing your credit card accounts. You might think that by doing so you will help your overall credit score, but you might actually hurt it instead. The reason is due to the fact that you’re subtracting from the credit amount that you have. This lowers your ratio between your credit and the amount you owe.
Speak with the company you have your credit card through in order to get your interest rates lowered. In many cases, companies are willing to lower the interest rates of customers who they have a lengthy and positive relationship with. A lower interest rate can save you a fortune in the long term and asking for a rate reduction does not cost you a penny.
Verify all fees and charges associated with a potential credit card, rather than just the APR and interest rates. Some companies may charge application fees, cash advance fees or service charges, which may make you think twice about having the card.
Credit cards offer great benefits when you learn to use them strategically and responsibly. Your life can be much better from having a credit cards, giving you flexibility, rewards, and emergency spending money. Apply what you have learned in this article to succeed in this area.