Fundamental Information About Credit Cards That You Much Know
Posted at by CreditWiz on category Credit CardsIt can be time consuming and confusing trying to sort though credit card promotions that arrive with your mail each day. They will tempt you with low rates and perks in order to gain your business with them. What should you do in this situation? The tips presented below will teach you just about everything that you need to be aware of when considering a credit card.
Don’t purchase things with credit cards that you know you cannot afford, no matter what your credit limit may be. While credit can help you afford things you can pay off over a few months, avoid charging expensive items that you cannot pay off quickly.
Never close out a credit card account without making sure that you know how it will affect you. Depending on the situation, closing a credit card account might leave a negative mark on your credit history, something you should avoid at all costs. It is also important to keep your major credit accounts active so that you do not lose a big portion of the credit history that you have built up over the years.
Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. If a retail store puts out an inquiry to the credit bureaus to check about your qualification status for their card, it will impact your score. A large number of inquiries that is present on a credit report can decrease your credit score.
Always pay your bills well before the due date, as this is a big part of maintaining your high credit score. A late payment can do a number on your credit score, and can also require you to pay pricey fees. If you set up an auto-pay schedule with your bank or card lender, you will save yourself money and time.
Before beginning to use a new credit card, you should carefully review the terms stated in the credit card agreement. Legally, using your card for the first time will probably mean that you accept the terms spelled out in that agreement. You should literally read the fine print.
Avoid using public computers to buy items with your credit card. Your information can be stored on public computers, like the ones in the library and coffee shops. To avoid this possibility, only make online purchases on private computers. Restrict your purchases to your own personal computer.
Keep contact information for credit card companies, your account number, and all other relevant data in a safe place that is easy for you to access. Leave it in a safe area and keep it separated from credit cards. The list will prove invaluable if you lose your cards or if they are stolen.
Many experts believe that the limits on your credit cards should not be above 75% of your total monthly salary. If you have a limit higher than a month’s salary, you should work on paying it off immediately. If you don’t the interest you pay could quickly get out of control.
Customers today are always getting offered credit cards and that makes it difficult to understand what they all entail. With some knowledge and education, it’s much easier to understand credit cards than you think. This article should give consumers the information needed to make smart decisions with credit cards.