Tips And Tricks That All Credit Card Users Must Know
Posted at by CreditWiz on category Credit CardsTry finding a credit card that lets you earn points towards products, services and vacations. Other people who do not utilize the advantages of credit cards may charge their vacation expenses and be faced will a stressful bill later. You would be wise to continue reading so you can get some great ideas about how to find the best cards and how to utilize those you already have in the right way.
Learn how closing a line of credit will affect you prior to closing it. Many times, closing an account leaves a negative mark on your credit record, and should be avoided, even if you do not plan to ever use the account again. It is important that you keep your oldest credit cards open, as they account for your credit history.
If you want a credit score that is good, be sure that you’re able to pay credit card payments before it’s due. A payment that you make too late, will lower your credit score, while costing you a lot of money. Set up auto payments with your creditors to save money and time.
Card issuers designate minimum payments so that they stand a better chance of maximizing the profits they make on interest charges. This is why you should always pay some amount over the minimum due. By doing this, you can prevent large interest fees in the future.
Never keep a written record of your pin number or password. You need to just remember what your password is so no one else can steal or use it. If you document your pin number, and keep it with your card, anyone can use it.
If your interest rate is too high, talk to your bank about changing it. If, after speaking with a retention team member, you are still unable to get a reduction, start looking elsewhere for a better rate. When you discover one, switch to a company that will serve you better.
Limit the number of credit cards you carry with you to one or two that you absolutely need. It may be that you have several cards, but try to determine which ones you are most likely to actually use. These will usually include a daily charge card and a gas card. Keep these on you and have the rest in a safe spot in your house.
Any credit cards that you have that you do not use, should be closed. Keeping them open makes it easier for you to be a victim of identity theft. You also may end up having to pay annual fees on the credit card accounts you aren’t using.
Try avoiding companies which charge an annual fee. People with good credit scores typically are offered cards that have no annual fees. These fees wipe out perks your card would have provided. Sit down and figure out the math for the long term. 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. See whether fees outweigh benefits of the card. Many times the fees do not outweigh the benefits, so consider carefully.
Keep a highly visible note posted somewhere, reminding you of your card’s balance and your recent purchases. Doing so helps to visualize the total amount you have spent. By not keeping track of credit card spending, it is too easy for this to get out of hand and then being in a position of not being able to repay is very real.
Even cards that don’t offer perks, points and rewards could still benefit you in life. Those who aren’t responsible with their credit cards may find themselves in future financial ruin. Use what you have learned from the tips above to help you to become a happy credit card owner.