One of the most useful forms of payment available is the credit card. A credit card can get you out of some pretty sticky situations, but it can also get you into some, as well, if not used correctly. Learn how to avoid the bad situations with the following tips.
If you see a charge on your card that isn’t yours, talk to your credit card issuer immediately. Taking immediate action gives you the highest probability of stopping the charges and catching the culprit. It also ensures you are not responsible for any charges made on the lost or stolen card. Fraudulent charges could be reported through a phone call or through email to your card provider.
Make sure that you pore over your credit card statement each and every month, to make sure that every single charge on your bill has been authorized by you. Many people fail to do this and it is much harder to fight fraudulent charges after a lot of time has passed.
Make the minimum monthly payment in the very least on all of your credit cards. Not making the minimum payment on time can cost you a great deal of money over time. It can also cause harm to your credit rating. To protect both your expenses, and your credit rating be sure to make minimum payments on time each month.
In order to keep a good credit rating, be sure to pay your bills on time. Avoid interest charges by picking a card that has a grace period. Then you can pay the entire balance that is due each month. If you cannot pay the full amount, pick a card that has the lowest interest rate available.
Whenever you are considering a new credit card, you should always avoid applying for credit cards that have high interest rates. While interest rates compounded annually may not seem all that much, it is important to note that this interest can add up, and add up fast. Make sure you get a card with reasonable interest rates.
Take advantage of the freebies offered by your credit card company. Many companies have some sort of cash back or points system that is attached to the card you own. When you use these things, you can receive cash or merchandise, just for using your card. If your card does not offer an incentive like this, call your credit card company and ask if it can be added.
It is important for people not to purchase items that they cannot afford with credit cards. Just because an item is within your credit card limit, does not mean you can afford it. Make sure anything you buy with your card can be paid off by the end of the month.
Use a credit card to pay for a recurring monthly expense that you already have budgeted for. Then, pay that credit card off each and every month, as you pay the bill. Doing this will establish credit with the account, but you don’t have to pay any interest, if you pay the card off in full each month.
Always pay your credit card bill on time. Paying credit card bills late, can result in addition charges on your next bill, such as late fees and interest charges. In addition to this, late payments can adversely affect your credit score. This can negatively affect your ability to make purchases, and receive loans in the future.
When using your credit card online, only use it at an address that begins with https:\. The “s” indicates that this is a secure connection that will encrypt your credit card information and keep it safe. If you use your card elsewhere, hackers could get hold of your information and use it for fraudulent activity.
It is often possible to receive an unsecured card after maintaining a sound record with a secured card for awhile. You will probably also getting other offers in your mailbox. It’s always important to assess your particular situation, but having an unsecured card may be a step in the right direction.
Carry only those credit cards you will actually need with you every day. Although you may have several cards, think of which cards you will need to carry. As a general rule, these will be the charge and gas cards you use every day. Carry these cards, while leaving the rest at home.
Keep your credit card spending to a small percentage of your total credit limit. Usually 30 percent is about right. If you spend too much, it’ll be harder to pay off, and won’t look good on your credit report. In contrast, using your credit card lightly lessens your stress, and can help improve your credit score.
As stated before in the introduction above, credit cards are a useful payment option. They can be used to alleviate financial situations, but under the wrong circumstances, they can cause financial situations, as well. With the tips from the above article, you should be able to avoid the bad situations and use your credit card wisely.