Interested In Getting Your First Credit Card? Check Out These Great Tips!
If you use them wisely, credit cards can give you all sorts of benefits, from a good deal on a vacation package to simple peace of mind. There is nothing worse than returning from a well deserved vacation to a large credit card bill awaiting payment. If you wish to use credit cards in a responsible, effective manner, keep reading in order to gain some great tips for smart credit management.
Many individuals falter when it comes to using their credit cards in the correct manner. While going into debt is unavoidable sometimes, many people go overboard and wind up with debt they cannot afford to repay. You should always pay your full balance each month. This way when you use credit and keep a balance that’s low, you will improve your credit score as well.
Credit card companies state your minimum payment and hope you will not pay more so they can collect more interest on your balance over time. This naturally means that you should pay more than simply the least allowable amount. You will save a lot of money on interest in the end.
Understand the APR you are being offered. Prior to getting a credit card, it is vital that you are aware of the interest rate. If you take a card with a high interest rate, you could pay two or three times the cost of your original purchase over time. If you have to pay higher balances, you might find you cannot pay the card off every month.
There are many credit cards that offer rewards programs for your spending. You should find a rewards program that will benefit you for regular usage of your card. If used wisely, you can end up with an extra income stream.
Any time you receive emails or physical mail regarding your credit card, open them immediately. Credit card companies are allowed to make certain changes to fees, regular interest rates and annual membership fees, as long as they give you written notice of the changes. If you don’t wish to comply, you are allowed to cancel that credit card.
If you do not own a locking mailbox, never order credit cards through the mail. Credit card thieves have admitted to taking cards out of mailboxes that were unlocked.
Never give your card number out over the phone. This is used by scammers all the time. Only share your credit card number with trusted businesses and with the company that owns the credit card. Never give your numbers to people who may call you on the phone. It does not matter who they say they are, you don’t know that they are being honest.
Credit card experts suggest that your credit limit should not be more than three-quarters of your monthly earnings. Also, you should never allow yourself to have a limit that exceeds your monthly salary. If you do, pay that card off and ask for a limit reduction. Interest on your credit card balance can quickly escalate and get you into deep financial trouble.
A great tip that credit card users can use is to ask for a copy of their credit report every year to make sure that everything is accurate. Make sure that any information on your report syncs with what is on your statements.
It is critical for you to keep a credit card account open for as long as possible once you have opened it. If you are constantly switching accounts, you will not build a history with a lender. The amount of time that your account has been open will have an impact on your credit score. Keeping accounts open helps credit.
Do not tell other people of the number of your credit card. Often times, people ask this information through the internet or through the phone. Do not do this if you do not know the company you’re dealing with. When receiving unsolicited requests for credit card numbers, be very cautious. There are many scams out there that want your credit card number. Therefore, it is important to protect yourself and remain diligent.
Your credit rating is in real jeopardy if you pile up more credit card debt than you are capable of repaying. If this happens then it can make it hard to rent an apartment, finance a car, get insurance or even in some cases, get a job.
Whenever you can, steer clear of cards that come with annual fees. People who have a healthy credit score are more likely to get these types of cards. Remember annual fees can take away from any rewards programs that are offered. Take a few minutes to run the numbers for yourself to see if the deal makes sense for you. Credit card providers don’t usually advertise annual fees, instead they include them in the small print. Get out your reading glasses. Check if the fees negate the benefits. Most of the time, they do not.
Use those cards that you don’t wish to lose. Most creditors will close accounts that have been active for a period of time. The only thing you can do to make sure that your credit cards remain open is to utilize those cards on a regular basis. Just don’t forget that you must pay the balance in full each month.
Do not give out money in order to receive a credit card. Legitimate credit card companies do not request fees upfront. Moreover, never pay any individual or company who claims they can help you to get approved for a credit card. So long as your credit is decent, you should be able to find your own credit card.
Even a straightforward credit card with no reward system attached can be beneficial to you, provided it is used right. Those who do not mindfully use their cards wisely with some of the sound strategies presented here might have momentary gratification, but also long term stress from bills. Use the things that you’ve learned from this guide to make wise decisions on spending money using your credit cards.