Things That You Must Know When Dealing With Credit Cards
Posted at by CreditWiz on category Credit CardsCredit cards can be useful in a lot of ways because they enable people to buy items without them having to pay for them instantly. Be sure you understand the basics before you start using your brand new credit card. Keep reading or useful tips about credit cards.
It is a smart idea to have a couple of credit cards. That will assist you in building up your credit score; this is especially true if you can pay the cards off each month. However, if you do open more than 3 accounts, it will not be a positive for prospective lenders.
A co-signer is a good way to get your first credit card. This can be a family member or friend with existing credit. They need to be willing to pay for your balance if you cannot pay for it. Many have found this to be a great help in beginning the process of building credit.
Set a realistic budget, so that you are able to stick to it. Simply because a card issuer has given you a spending limit, you should not feel obligated to use the entire amount of credit available. It is important to stay within your budget and do not charge more than you can pay when the bill comes due.
Before you ever use a new credit card, it is important to carefully read through all of the terms of the credit card agreement. The first time you use your card is often considered to denote acceptance of the agreement terms. Although the print may be small, it is extremely important to read the agreement fully.
Read the fine print to determine what conditions may affect your interest rate as they can change. Credit card companies are in major competition with each other, so different companies will offer different rates to their potential customers. Call your bank if you are unhappy with the interest rate given to you.
Avoid closing your credit card accounts. Although you may think doing this will help you raise your credit score, it can actually lower it. The reason for this is that the credit reporting agencies look at your available credit when considering your score, meaning that if you close accounts your available credit is lowered, while the amount you owe remains the same.
Never give anyone credit card numbers on the Internet or on the phone unless you know and trust the company. Be very suspicious of any offers that are unsolicited and request your credit card number. Many scammers exist who want your card number. Protect yourself and be diligent.
Don’t lie about your income to get a higher limit credit card. If a company doesn’t verify that the information regarding your income is true, you may get that higher limit – and you may rack up charges that you truly cannot afford to repay.
Once you’ve closed your account associated with your credit card, remember to destroy the card completely. Simply throwing it away, or stashing it in a drawer makes you susceptible to credit card fraud and could have you paying a lot of money.
Stay away from cards that require annual fees. Most no annual fee credit cards are presented to people with a good credit score. Most often, such fees counteract the perks a card may have. Do your calculations. The majority of credit card companies will not announce their annual fees; rather, they will hide them deep in fine print. Get out your reading glasses. Assess whether the card’s fees are a more substantial factor than the its possible benefits. Many times the fees do not outweigh the benefits, so consider carefully.
Keep a close eye on transactions made with your credit card. You may be able to get alerts sent right to your mobile phone about your credit card. With mobile alerts, you can immediately look into questionable charges. If you notice any suspicious activity with your account, be sure to contact your bank, and if necessary, the police.
When you use your card properly, they can prove extremely helpful. This article’s advice will assist you in properly using your credit card, while avoiding debt and keeping an ideal credit score.