Learn How To Use Credit Cards Safely
Posted at by CreditWiz on category Credit CardsTry finding a credit card that lets you earn points towards products, services and vacations. People who don’t utilize the tools they have when it comes to credit waste all of their money on vacations, when they could be having a portion of it paid off for them. If you would rather avoid credit card stress, then some helpful information on how to manage them properly awaits you here.
Know how closing a credit card will affect you before you do it. Sometimes closing a card can have a negative affect on your credit, so you should avoid doing so. In addition, if you have cards that make up a large portion of your entire credit history, try to keep them open and active.
There are often great bonuses for accepting a new card. However, that incredibly fine print listed in your contract could come back to bite you hard. Make sure you read and understand the terms and conditions of any bonuses. A common term is the requirement that you make a particular amount of expenditures in a given time frame in order to qualify, so you should be confident that you can meet the conditions before you jump at such an offer.
Always monitor your balance. Also know your current credit limit so that you avoid exceeding it. If you happen to charge an amount over your limit, you will face fees that are quite costly. It is going to take longer to pay down the balance if you keep exceeding your limit.
If you wish to have credit cards but you have no established credit, get a co-signer. Co-signers can be siblings, parents, close friends, or anyone with established credit. It’s important to know that being a co-signer means that person is liable for the credit card bill in full if you don’t pay it. This is a perfect way to start building your credit.
Before applying for a credit card ensure you understand the terms and conditions. You could discover the interest rate, fees, and payment schedule are a lot more than you anticipated them to be. Carefully read over the fine print so that you can ensure you completely understand the policy.
Always read every letter you get regarding your credit card. Written notice is all that is required of credit card companies before they change your fees or interest rates. You have the right to cancel a credit card if you disagree with any changes.
Don’t think that interest rates they offer you are written in stone and cannot be changed. Credit card companies normally have several interest rates they can offer to customers. If you are unhappy with your current interest rate, contact your bank or credit card company and ask for a better rate.
If you have poor credit, you may want to apply for a credit card that is secured. These cards require some kind of balance to be used as collateral. In actuality, you simply use your own funds and pay interest in order to hold the card. If you’re using a credit card to boost your credit score, then a secured card is definitely the way to go. Choose reputable companies when you sign up for secured cards. They might offer you better cards later which can further enhance your credit score.
Even without the advantages of points and perks like vacations, credit cards can be great tools to have at your disposal. People who do not use the credit information presented here may have short term gratification, but could have stress for years from unpaid debt. Use the things that you’ve learned from this guide to make wise decisions on spending money using your credit cards.