Let’s face the truth; today, people need advice about managing their money and preventing pitfalls due to overspending! Although you can derive considerable utility from credit cards, using them irresponsibly can drive up your debts and give you more trouble than you bargained for. Read on to gain some knowledge on how to use your card responsibly.
When it is time to make monthly payments on your credit cards, be sure that you pay more than the minimum amount that you are required to pay. If you only pay the small amount required, it will take you longer to pay your debts off and the interest will be steadily increasing.
Always read the fine print to see if there’s an annual fee before accepting an exclusive credit card. Annual fees for platinum or black cards could be in the range of $100 to $1,000 depending on the exclusivity of the card. If you do not need the perks associated with these cards, don’t pay the annual fee.
As soon as you receive your credit cards, sign them. A lot of people skip this step and have their cards stolen. Many retailers will always verify a customer’s signature matches the one on the back of their credit card in order to reduce the number of fraudulent transactions.
Keep tabs on your credit score periodically. Good credit typically starts around the 700 range. Establish your credit so that you can obtain and keep that level. When you have a 700 or higher credit score, you will get the best card offers with rates that are the lowest.
The key to using a credit card correctly lies in proper repayment. Every time that you don’t repay the balance on a credit card account, your bill increases. This means that a $10 purchase can quickly turn into a $20 purchase all due to interest! Learn how to pay it off every month.
Almost everyone has had this happen. You receive another credit card solicitation by mail, with an offer for you to apply for a credit card. Often times you won’t be interested in getting a new credit card right them. Shred this mail before throwing it away. While it may be tempting to just toss them in with the rest of the garbage, these solicits contain personal information, and you should take the time to protect yourself.
Look into the rewards that credit card companies offer. Find one that is going to pay you for making purchases on their card. If you are trying to maximize the rewards, charge everything you can on the card, but be sure to put enough cash back to pay the card off each month, in order to avoid losing your rewards to interest fees.
You should try and limit the number of credit cards that are in your name. Too many credit cards is not good for your credit score. Having several different cards can also make it more difficult to keep track of your finances from month to month. Try and keep your credit card count between two and four.
If you pay your credit card bill with a check each month, make sure you send that check out as soon as you get your bill so that you avoid any finance charges or late payment fees. This is good practice and will help you create a good payment history too.
Don’t use a fax machine to transmit your credit card information. Incoming faxes can sit in a holding bin forever, leaving your credit card data vulnerable to anybody who happens to walk by. Any of these people could be, or know of, a thief. That can set you up for fraudulent activity on your account, as well as all the problems that go along with that.
Shred old credit card receipts and statements. You can easily purchase an inexpensive home office shredder to handle this task. Those receipts and statements, often contain your credit card number, and if a dumpster diver happened to get hold of that number, they could use your card without your knowledge.
If you are having trouble paying off your credit cards, try negotiating with your creditors. You will be surprised at how willing they sometimes are to help consumers get their debt under control. You can ask for lower interest, or a payment schedule that you can afford. It never hurts to ask, right?
A great way to solve your credit card payments is to actually pay it down with an additional credit card. Just make sure that the other card has better rates. Even if interest rates are not appreciably better, some credit cards offer rewards with a value toward vacation travel and hotels. It is important however, that you do the appropriate accounting first.
In conclusion, consumers often fall victim to the negative effects of credit cards, such as high interest rates. Properly used, credit cards can improve your credit rating, increase your buying power, and save you money.