How You Could Maximize Your Credit Cards
Posted at by CreditWiz on category Credit CardsAlthough credit cards can be a great financial tool, they can also be a huge frustration for many people. With the right advice, living with credit cards isn’t all that bad. Read this article to learn some credit card tips.
Alert your credit card issuer the moment you are having financial difficulty. If you’re likely to miss a payment, you want them to know so they can work with you, which they usually do. In many cases, after setting up such a deal credit card companies will not have to make late payment reports to the credit bureaus.
Pay close attention to your credit balance. You also need to know how close you are to your credit limit. If you exceed your card’s credit limit, you could be charged some hefty fees. Exceeding your credit card limit can impede your ability to pay off your balance quickly.
Develop a realistic budget for your credit cards. While your credit card limit may be ten or fifteen thousand dollars, that isn’t necessarily what you should spend. Understand the amount you can realistically afford each month so that you will not incur interest charges.
Always use credit cards in a smart way. Don’t buy anything that you know you can’t afford. This will ensure that you can pay the charges off when your statement arrives. If you hold onto your balance, your debt will keep increasing, which will make it much more difficult for you to get everything paid off.
Avoid purchasing items out of your budget with your credit card. Even though you really want that new flat-screen television, credit cards are not necessarily the smartest way to purchase it. You will wind up paying huge amounts of interest; additionally, the payments each month could be more than you can afford. Leave the item in the store and think about the purchase for at least a day or two before making a final decision. If you do decide to make the purchase, see if the store offers financing that is usually lower interest than your credit card.
Do not lend out credit cards under any circumstance. It’s a bad idea to lend them out to anyone, even friends in need. You may end up exceeding your credit limit and incurring charges if they make charges you were not expecting.
If anyone calls and asks for your card number, tell them no. This is a very common tactic by scammers. Only give your card number to businesses you can trust. Do not give them to people who call you. No matter what or who they might claim to be, there is no way for you to know who you are talking to.
Maintain a contact list that includes issuer telephone information and account numbers. Put this list in a safe place, like a deposit box at your bank, where it is away from your cards. The list will assist you in promptly notifying card lenders should you lose your cards or have them stolen.
As mentioned earlier, it is common for individuals to feel irritated by the actions of their card issuers. It is much easier to have realistic expectations if you thoroughly understand a credit card before applying. Use this article’s suggestions and enjoy life with a credit card that much more.