Have you thought that you needed a credit card for emergencies, but have not been sure which card to get? If so, you’re in the right place. This article will answer all your questions about credit cards, how to use them, and what to look for in a credit card offer. Read on for some great tips.
You want to not only avoid late payment fees, but you also want to avoid the fees tied to going over the limit of your account. The fees are both high, and not only do they cost your wallet, but they also affect your credit score negatively. Monitor things closely, and never exceed your personal limit.
Don’t run out and get yourself multiple credit cards as soon as you come of age. Before you apply, you should investigate how the industry works, and what your responsibilities will be when you have a credit card. Seek advice from someone you trust prior to getting a credit card.
If you are not satisfied with the high interest rate on your credit card, but aren’t interested in transferring the balance somewhere else, try negotiating with the issuing bank. You can sometimes get a lower interest rate if you tell the issuing bank that you are considering transferring your balances to a different credit card that offers low-interest transfers. They may lower your rate in order to keep your business!
If you have a credit card, add it into your monthly budget. Budget a specific amount that you are financially able to put on the card each month, and then pay that amount off at the end of the month. Try not to let your credit card balance ever get above that amount. This is a great way to always pay your credit cards off in full, allowing you to build a great credit score.
If you are determined to stop using credit cards, cutting them up is not necessarily the best way to do it. Just because the card is gone doesn’t mean the account is no longer open. If you get desperate, you may ask for a new card to use on that account, and get trapped in the same cycle of charging you wanted to get out of in the first place!
Do not write you password or pin number down at any time. It is important that you remember your password, so that you are the only one that has access to it. Writing down your password or pin number, and keeping it with your credit card, will allow anyone to access your account if they choose to.
If anyone asks you to give them your credit information or card number over the phone, never give it to them. It is always a mistake to give out your confidential information to anyone over the telephone as they are probably scammers. Only provide your number to the businesses that you fully trust and to the card company when you contact them. Never give your numbers to people who may call you on the phone. No matter who a caller says they represent, you cannot trust them.
It is good practice to check your credit card transactions with your online account to make sure they match up correctly. You do not want to be charged for something you didn’t buy. This is also a great way to check for identity theft or if your card is being used without your knowledge.
If you feel your interest rate is excessive on your credit card, ask the issuer to lower it. If they end up refusing you, you can always look for a credit card with better interest rates. After you find a better rate, do not hesitate to make a change.
Do not sign up for store cards in order to save money on a purchase. Often times, the amount you will pay for annual fees, interest or other charges, will easily be more than any savings you will get at the register that day. Avoid the trap, by just saying no in the first place.
Keep your accounts open. It may seem like the obvious thing to do to help your credit score, but closing accounts can actually be detrimental to your credit score. 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.
Ask the credit card company if they would consider lowering your interest rate. There are plenty of creditors who will lower interest rates if the consumer has established a good history of on time payments. It doesn’t cost you a penny to ask, but it can save you a lot of money.
Do your research on the best rewards cards. Whether you are interested in cash back, gifts, or airline miles, there is a rewards card that can really benefit you. There are many out there, but there is a lot of information available online to help you find the right one. Be careful to not carry a balance on these rewards cards, as the interest you are paying can negate the positive rewards effect!
Keep the total number of credit cards you use to an absolute minimum. Carrying balances on multiple credit cards can complicate your life needlessly. Shift your debt onto the card with the lowest interest. You will be able to keep better track of your debts and pay them off faster if you stick with a single credit card.
When getting a credit card, a good rule to follow is to charge only what you know you can pay back. Yes, many companies will require you to pay only a certain minimum amount every month. However, by only paying the minimum amount, the amount you owe will keep adding up.
After reading this article, you should be far less confused about credit cards. You now know how to evaluate credit card offers and how to find the right credit card for you. If this article hasn’t answered absolutely everything you’ve wondered about credit cards, there’s more info out there, so don’t stop learning.