Read This Piece To Learn All About Credit Cards
Posted at by CreditWiz on category Credit CardsCash is always good, but credit cards mark the future of finances. As banks start to charge more for just about every kind of credit service, more and more people are using their credit for all types of transactions. This article will help you to navigate the tricky world of credit cards.
Do not close any credit card accounts before you are aware of the impact it will have on you. Many times it leads to lowering your credit score which you do not want. 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.
Before opening a credit card, be sure to check if it charges an annual fee. Platinum and black cars charge very high fees normally, that can range from one hundred dollars all the way up to one thousand dollars. More exclusive cards have higher fees. If you don’t care about exclusivity, these cards aren’t for you.
Make it your goal to never pay late or over the limit fees. These fees cost you both money and points on your credit score. This is a very good reason to always be careful not to exceed your limit.
Practice wisdom when it comes to using your credit cards. Keep spending under control and only make credit card purchases you can actually afford to pay for. Before using credit cards to get something, you need to know if you’re able to pay it off right when you get a statement. Carrying a balance makes it easier to rack up debt, and more difficult to pay off the total balance.
Never use a password or pin code for your credit card that is really easy for people to figure out. Don’t use something obvious, like your birthday or your pet’s name, because that is information anyone could know.
Don’t believe that interest rates they offer you are concrete and are staying that way. Because there is a large amount of competition in this industry, the interest rate is always negotiable. If you are unhappy with your current interest rate, call the bank or company and ask for a lower one.
Most professionals say that limits on your credit cards should not be more than 75% of what your salary is every month. If your balances exceed one month’s pay, try to repay them as quickly as possible. The interest on several accounts can quickly get out of control.
If you’re not happy with the interest rate that you are being charged, ask the bank if they can change it. If your issuer does not agree to a change, start comparison shopping for other cards. After you find one, change to the credit card that will service your needs better.
When you have a credit card account, the best practice is to keep it open for the longest possible amount of time. Once you open a card, keep it open and use it regularly; don’t constantly switch credit cards. The longer your positive credit history is with a creditor, the better your credit score. One component of building your credit is maintaining several open accounts if you can.
Carefully review your monthly credit card statements. Look for inaccuracies associated to the charges you make, as well as any charges you didn’t make. Report any discrepancies to your creditors right away. This way, you will be paying the correct amount, and your credit score won’t be unduly affected.
Always make sure that the company you give your account number to, online or by phone, it a trustworthy company. If you are getting odd offers that want the number of your credit card, be very careful. There’s a lot of scams where people try and get your card number. Be diligent and protect yourself.
Credit cards are becoming increasingly popular with the newer regulations and fees attached to many debit cards. Now that the market is expanding, you can also benefit from having a credit card. Use the information presented in the tips above to help you to get the most from your credit cards.
