What Should You Use Your Credit Cards For? Check Out These Great Tips!
Posted at by CreditWiz on category Credit CardsIn many bad financial situations, a credit card can act as a lifesaver. Do you want to pay for an item, but don’t have any cash? This is no issue. A credit card is accepted for virtually any need you might have. Is it your goal to increase your credit score? You can do it with a credit card! Continue reading to find out other ways to make use of a credit card.
Make sure you can afford everything you buy with a credit card. It’s fine to use credit cards to stretch out the payments for an item you can afford, but refrain from making a major purchase that you couldn’t afford otherwise.
If your financial circumstances become more difficult, speak with your card issuer. Oftentimes, the credit card company might work with you to set up a new agreement to help you make a payment under new terms. This communication may keep the company from filing a late payment report with creditreporting agencies.
Always pay your credit card on time. All credit balances have a specific due date; if you don’t pay attention to it, you will likely be charged high fees. Furthermore, it is common for card issuers to increase interest rates, which means that every expenditure will be more expensive going forward.
Credit cards can be tied to various types of loyalty accounts. If you use credit cards on a regular basis, it is wise to find one with a loyalty or rewards program that you find personally useful. If you use it smartly, it can act like a second income stream.
In order to get the best credit cards, you need to keep tabs on your credit record. Creditors use your credit score to determine what sort of card they are willing to offer a potential customer. Cards with more perks and lower interest rates are offered to people with higher credit scores.
Do not document your password or pin number. You need to memorize your password, as this is the only way you can ensure that no one else will find it and use it improperly. Keeping your card and the PIN in the same location is an open invitation to thieves and fraudulent people.
In recent years, there have been several new credit card laws enacted, and the wise consumer will familiarize himself with them. A credit card company is prevented by law from retroactively increasing rates, for example. Double-cycle billing is something that is also not allowed. Educate yourself about credit card laws. The two important laws that have come into effect recently are the CARD Act as well as the Fair Credt Billing Act.
Document everything you put on your card each month. These types up purchases are usually unnecessary and increase your balance and interest fees needlessly. It is very easy to charge more to your credit card than you can pay off monthly.
Do not just assume that the billing statements from your credit card company are accurate. Try to find anything that doesn’t seem accurate and look for charges you may not have made. Talk with your company about the problem immediately. Your credit score may benefit, and you can avoid overpaying.
Never provide your card number online or over the phone without really knowing the company that you are in contact with. Be very suspicious of any offers that are unsolicited and request your credit card number. There are a lot of scams that people try to use to collect credit card numbers. Be thorough and protect your card number.
While it is important to look at the interest rate of a credit card you are applying for, you should also look at any hidden fees that aren’t immediately apparent. Look for fees like service charges, cash advance fees, and application fees.
As you can clearly see, credit cards can be used for a lot of things. You can use them for everything from boosting your credit score to paying for things in the supermarket. Keep this advice in mind whenever you use your card.