Although credit cards can be a great financial tool, they can also be a huge frustration for many people. Just like with anything else, it is easier to make dealing with credit cards a more hassle-free experience if you have the right advice. The article below discusses some of the best ways to use credit responsibly.
If you have poor credit, you may want to apply for a credit card that is secured. These cards require balances as collateral. You basically borrow money from yourself, although you have to pay interest on the loan, too. Not ideal, but it may be the only way to repair your credit standing. When you are going to apply for one of these secured credit cards, make certain the company you choose is reputable. As time goes by, you might even find that the company offers you an unsecured credit card.
Do everything you can to minimize how many credit card accounts you keep open. This is because it is difficult to monitor spending on several credit cards as compared to one credit card. If you hold less cards, you will probably have less debt.
Almost everyone has had this happen. Company after company sends you information about their fantastic credit card, week after week. Sometimes you may want a new card, sometimes you might not. When you toss the mail out, tear it up. Simply tossing it away leaves you at the risk of identity theft.
Look for cards from the major credit card companies when you are seeking a new card. They will give you more rewards and often have a better customer service operation. If you have a choice when choosing a credit card company, it’s best to go with a major brand company. After all, this does affect your credit score and history.
Students who are considering new credit cards need to pay particular attention to fees and terms found in the fine print. Many times, a student credit card carries high annual fees or big penalties, so do your homework to find the most advantageous card for you.
Online purchases should only be with trusted vendors whom you have checked out before divulging information. Try out any telephone numbers they have listed, and if there is no address listed for the seller, treat this with suspicion.
Although it may be tempting to pay for everything with a credit card, use a credit card wisely. A lot of vendors require you to buy a certain amount of things before you can use your card, so you may end up buying things you do not really need. Keep your card for items that cost more than $10.
Consider getting a co-signer if you haven’t yet established credit. Anyone who has good credit can be your co-signer. They must be willing to sign stating they will pay the balance due on the card if you do not pay it. This can help you get a first credit card, and start building your own credit.
Understand the terms of relevant credit billing acts. This new law protects consumers from liability for unauthorized charges made to their credit card accounts. It can help prevent fraud if you know how it works. Sometimes credit companies try to hold card holders responsible when they should not be, and this is when this law applies.
Never leave a space blank on your credit card receipt when you make a purchase. If the receipt includes a tip line and you aren’t leaving a tip, draw a line in the tip space. If you do not you take the chance of an employee writing in an amount themselves. Also, check that your purchase amounts match the amounts on your statement.
Keep up with the emails and correspondences from your credit card company. Read them immediately. Creditors are always allowed to change certain things about your fee schedule if they let you know about it in writing. If you don’t agree with their changes, it’s your decision if you want to cancel your credit card.
Report a lost or stolen credit card to the credit card company as soon as you notice it is missing. If a thief uses your card prior to the theft being reported, you might end up paying for whatever they purchased. Once the card has been reported stolen, your credit card issuer will not be able to hold you accountable for transactions made on it.
Never believe your offered interest rate is absolute and should remain this way. The credit card industry is a competition, and all credit card companies have different interest rates that they can use. If you do not like your current interest rate, contact your bank and request that they lower it.
When looking for secured cards, do not get prepaid cards. This is nothing more than a debit card and won’t affect your credit rating. Many prepaid cards charge extra fees and they are really just a checking account. By putting a deposit down to obtain a secured card, your credit score will begin to improve.
When it comes to the due date of your payment, learn the difference between the suggested due date and the actual due date. Suggested due dates are used more frequently and are often 15 days before the real due date. It is helpful to know whether yours is a suggested or actual due date, especially if you are in a tight spot one month.
If you use a number of different credit cards, give them priory based on the interest rate of each. Generally, it’s a great idea to use a card that charges you the least amount of interest. It is best to carry as little debt as possible from one month to another. When you have a balance, focus on low APR cards so the interest rate charges are the best you can afford.
As previously mentioned, credit card companies are frequently a source of frustration and disappointment for people. However, you are more likely to choose the right card and have a positive experience by doing your research ahead of time. Use this article’s suggestions and enjoy life with a credit card that much more.