Credit cards may make or break you, when it comes to your personal credit. Not only can you use them to help build up a great credit score and secure your future finances. You may also find that irresponsible use can bury you in debt and ruin you. Use this article for great credit card advice.
Set a realistic budget, so that you are able to stick to it. You should not max out your card just because a certain amount is available on your card. Know your monthly income, and only spend what you can pay off in full each month. This will help you to avoid owing interest payments.
Don’t put off signing the back of any new credit cards you’ve been issued. If you don’t sign it immediately, your card can easily be stolen and used. At some stores, cashiers will verify your signature on the card against the signature you sign to the receipt as an added security measure.
Retain copies of all receipts for credit card purchase made on the web. Check the receipt against your credit card statement once it arrives to ensure that you were charged the correct amount. If there is an incorrect charge, contact your credit card company immediately. This will ensure you don’t get overcharged for your purchases.
Make sure that you watch your statements closely. If you see charges that should not be on there, or that you feel you were charged incorrectly for, call customer service. If you cannot get anywhere with customer service, ask politely to speak to the retention team, in order for you to get the assistance you need.
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.
Everyone has had this experience. You get a credit card advertisement in the mail and it asks you to get a card from them. While a credit card offer is sometimes welcome, more often you do not have need of it. When you throw out the mail, rip it into small pieces. Do not simply toss it away, as many of these letters contain your personal information.
Don’t open too many credit card accounts. A single person only needs two or three in his or her name, in order to get a good credit established. More credit cards than this, could actually do more damage than good to your score. Also, having multiple accounts is harder to keep track of and harder to remember to pay on time.
You may want to consider using layaway, instead of credit cards during the holiday season. Credit cards traditionally, will cause you to incur a higher expense than layaway fees. This way, you will only spend what you can actually afford during the holidays. Making interest payments over a year on your holiday shopping will end up costing you far more than you may realize.
Some people think that avoiding credit cards altogether will help their credit because they won’t have any debt. You will never be able to build a credit report if you do not have at least one open credit card account. Use the card for a few purchases that you can afford to pay off quickly. This will help establish credit without building a large balance. Your credit score will improve and you will be looked at as a better risk to lenders.
Use a credit card that offers rewards. Not every credit card company offers rewards, so you need to choose wisely. Reward points can be earned on every purchase, or for making purchases in certain categories. There are many different rewards including air miles, cash back or merchandise. Be wary though because some of these cards charge a fee.
If you get into trouble, and cannot pay your credit card bill on time, the last thing you want to do is to just ignore it. Call your credit card company immediately, and explain the issue to them. They may be able to help put you on a repayment plan, delay your due date, or work with you in ways that won’t be as damaging to your credit.
Do not be dishonest about your finances when you are applying for credit cards just because you would like a higher limit. Some companies don’t bother to check income and they grant large limits, which may be something you cannot afford.
As mentioned earlier in this article, credit cards can make or break you and it is up to you to make sure that you are doing all that you can to be responsible with your credit. This article provided you with some great credit card advice and hopefully, it will help you make the best decisions now and in the future.