A good credit card can be a lifeline in a number of financial jams. Need to buy something but your wallet is empty of cash? Not a problem! Having a credit card can get you out of an immediate jam. Do you want a better credit score? It is easy to do that with a credit card. Read on to find tips and information for using charge cards to improve your financial situation.
Do not forget to factor in your charge cards when creating a budget. Add your credit card budget into the budget you have created for your paycheck. Do not consider your available credit as extra income. Set a limit for yourself on how much you are able to spend for your credit card every month. Stick to that, and pay it off each month.
Set yourself a budget you can stick with. The limit placed on your card is not a goal to be reached, so you don’t need to spend it to the max. Avoid interest payments by knowing what you can afford and paying off your card every month.
Be sure to read the fine print on a credit card account before using it. The majority of card issuers see the initial purchase as your acceptance of a card’s terms. No matter how small the print is on your agreement, you need to read and understand it.
Charge cards are usually tied to varying types of loyalty programs. Look for a useful loyalty program if you use charge cards regularly. If used wisely, you can end up with an extra income stream.
Don’t write your password or pin down in any circumstances. Be sure to keep the password in your mind only, so you’re the only person who can access it. If you document your pin number, and keep it with your card, anyone can use it.
Before making an online purchase with your credit card, you need to make sure that you are dealing with a legitimate seller. Make sure to call the listed phone numbers to ensure that the company is who they say they are. Also look for a physical address listed.
It is possible that your interest rate can be reduced, so do not think that you are stuck with the rate you were given. Credit card companies normally have several interest rates they can offer to customers. If you are unhappy with your current interest rate, call the bank or company and ask for a lower one.
If your interest rate does not satisfy you, request that it be changed. Make it clear you are considering closing your account, and if they still won’t help you out, look for a better company. When you find one, try to switch over to that company right away.
Avoid charging things like groceries or restaurant tabs on your credit card as these can take a while to appear on your monthly statement, which means possibly underestimation the balance you really have available to you. You can end up spending more since you will think your balance is lower than it actually is.
Don’t ever offer anyone the number associated with your credit card, be it via telephone or the web unless you know and trust the company or individual you are speaking with. If you’re receiving requests for your card number, be cautious. There are tons of scammers and unscrupulous individuals who are just waiting for the chance to steal credit card information. Protect yourself by being cautious and staying diligent.
Avoid exaggerated income statements when applying for a card, just to get a higher limit. Some companies don’t verify income and will give you an inappropriate card for your spending habits.
Interest rates can be negotiated. Contact the company that issues your credit card, you may be able to get them to lower your rate. If you have made all your payments on time and have proven to be a good customer, chances are they will give you a lower APR if you ask.
Credit Card Accounts
You should close all credit card accounts that you don’t use. Keeping them open makes it easier for you to be a victim of identity theft. Credit card providers can also charge large annual dormancy fees for unused credit card accounts.
Do not get a credit card with an annual fee if you have any other options. Most no annual fee credit cards are presented to people with a good credit score. These annual fees can negate any advantage of a rewards program. Take the time to do the calculations. Annual fees are usually found finely written into the terms and conditions of the credit card, not in the promotional materials. Break out those reading glasses. Assess whether the card’s fees are a more substantial factor than the its possible benefits. Many times, they don’t.
Check with your credit card company to see if they will reduce the annual percentage rate on your card, particularly if you have solid credit. Sometimes they actually will do this. Each time you do not pay off your balance, you will save money.
If you are a parent make sure your child is financially responsible before allowing them to have a credit card. It can be hard to say no to a child, but it’s better to deny them something that could cause them financial disaster if they are not ready.
As you can clearly see, credit cards can be used for a lot of things. They run the gamut from paying at a store to increasing a person’s overall credit score. Make use of the tips above and learn to use your charge cards wisely.