Some people choose to live without credit cards because they fear that they might run up lots of debt if they got one. Credit cards should not be feared. They help to build your financial history and credit score, making it easier for you to get loans and low interest rates. In the article that follows you can find advice that will help you with credit cards.
Whenever you spot anything fraudulent on your monthly credit card statement, call the issuing company right away. By doing this, you will help the card company to catch the person responsible. Additionally, you will avoid being responsible for the charges themselves. Any charges that you did not make need to be reported to your credit company with a phone call or a high priority email.
Only inquire in regards to opening retail cards if you seriously shop at that store regularly. Even applying for a card with the store will reflect badly on your credit score if you’re not accepted, and there’s no sense in applying if you’re not a regular shopper. Too many inquiries can make your credit score go down.
To keep your credit score high, make sure to pay your credit card payment by the date it is due. Paying late will hurt your score and incur extra fees. Avoid this problem by setting up automatic payments to come out of your bank account on the due date or earlier.
If you only pay the minimum amount each month on your credit card, only the credit card company benefits. The monthly minimums are deliberately designed to be so low that you will be paying for years in in order to pay off your balance. In the meantime, the credit card company will be collecting inordinate amounts of interest from you. Always pay above the minimum. This helps you steer clear of expensive interest payments down the road.
If you have not yet established your own credit history, a co-signer can help you get your first credit card. A co-signer could be a trusted friend, sibling or parent and anyone that already has established credit. By signing, they agree to be responsible for your credit card payment if you default on it, so they have to be completely willing to do this. Many have found this to be a great help in beginning the process of building credit.
Create a budget to which you can adhere. Just because you are allowed a certain limit on spending with your credit cards doesn’t mean that you need to actually spend that much every month. You can minimize the cost of using a credit card if you stick to a budget that allows you to pay your balance off in full every month.
If you want a brand new credit card, try limiting the search to those with lower interest rates and that do not have annual fees. Given the sheer number of cards on the market that do not have annual fees, acquiring cards that do require such fees is unnecessary.
All people with credit cards should get a copy of their credit report at no cost each year and look to see that everything is right. Look on the debt on the report and double check your statements to ensure that everything is accurate.
Use a checkbook balance-type system to keep track of your monthly credit card spending. Keep in mind that impulse and incidental purchases can add up really fast. If you don’t keep track of how much you’re spending, you may find that you can’t afford to pay off your bill when it comes.
If you are carrying a high balance on your credit card, do all you can to lower it. Having high balances on various cards can make it difficult to get credit for other purposes. When this occurs, it can be difficult to get car loans, apartment leases, or maybe even employment.
Any credit cards that you have that you do not use, should be closed. Having cards lying around, even if you’re not using them, can lead to identity theft. It’s not worth the risk. Some credit card companies charge an annual fee even if you are not making any charges against your account.
If you are in good credit standing, but looking at high interest rates, try calling the credit card company to see if they will reduce the rate for you. A lot of times they will bring it down for you. This results in real savings in the months you carry balances.
Don’t pay your credit card bills with credit cards. Sometimes, in desperation, card owners will use cash advances to get themselves through a month that they cannot afford to make any credit card payments. However, you will pay very high interest rates and even some fees to take advantage of this trick, meaning it is not worth your while.
Don’t pay money before you receive a credit card, unless you are seeking a secured card. Legitimate credit companies don’t charge fees beforehand. Additionally, you shouldn’t pay anyone to get you a card. If your credit is decent, you can get one on your own.
If you lose or don’t know where your credit card went, then you need to contact the credit card company. The company can then block your credit card so that no unauthorized charges can be made to it. Then, you’ll receive a new card and number from your credit card company.
Be certain to know whether the payment due date on your card is true, or merely suggested. A lot of companies are now using suggested payment due dates; these dates can be up to fifteen days sooner than true due dates. Those dealing with suggested due dates can benefit from realizing when the actual due date occurs in the event that they need more time to pay their bill.
Knowing what you’ve now read about credit cards, you should be comfortable with the fact that a credit card isn’t something to fear. When you know how to use them properly, credit cards can be very handy, so you do not have to feel anxious. Just remember this article’s suggestions and you’ll be alright.