Are there any good reasons to use credit cards? If you are one of the people who believes you should never own a credit card, then you are missing out on a useful financial tool. This article will give you tips on the best way to use credit cards.
A co-signer is a good way to get your first credit card. This can be anyone who trusts you, like a relative or close friend. They need to be willing to pay for your balance if you cannot pay for it. That can be a terrific method of acquiring a first card for credit building purposes.
Be sure that you fully understand the terms of the credit card prior to signing up for it. You may find that the interest rate, payment schedule and fees, are more than what you initially thought they would be. Read through the entire terms of agreement pamphlet to make sure you are clear on all the policies.
Only take cash advances from your credit card when you absolutely have to. The finance charges for cash advances are very high, and very difficult to pay off. Only use them for situations in which you have no other option. But you must truly feel that you will be able to make considerable payments on your credit card, soon after.
Be careful if you buy things online with your credit card. Before entering any of the information for your credit card, ensure that the website you are on is completely secure. This is the best way to keep all of your personal information safe. Any email that asks for credit card details should be immediately deleted as these are generally fraud schemes.
A great tip for saving on today’s high gas prices is to get a reward card from the grocery store where you do business. These days, many stores have gas stations, as well and offer discounted gas prices, if you sign up to use their customer reward cards. Sometimes, you can save up to twenty cents per gallon.
A lot of experts agree that a credit card’s maximum limit shouldn’t go above 75% of the amount of money you make every month. If you have credit limits that are more than you make every month, you need to start paying off that debt right away. This becomes critical because the interest charges will continue to push your balances higher and higher.
You should ask the people at your bank if you can have an extra checkbook register, so that you can keep track of all of the purchases that you make with your credit card. Many people lose track and they assume their monthly statements are right and there is a huge chance that there may have been errors.
It is wise to refrain from giving a credit card to a child. It is best to let children wait to get credit cards until they reach the age of 18, or when they can get their own. Instead, consider opening them a checking account and giving them an allowance. This will help them learn to manage a small amount of money so that they will be ready to manage a credit card when the time comes.
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.
Try to reduce your interest rate. Call your credit card company, and request that this be done. Before you call, be sure you know how long you have had the credit card, your overall payment record, and your credit score. If all of these show positively on you as a good customer, then use them as leverage to get that rate lowered.
Never send your credit card information through a fax machine. Faxes are sometimes left unsupervised for long periods of time, and many people may have access to your number. Anyone who views this fax could use your information to steal from you. This exposes you to credit card fraud and various other issues.
Do your research prior to applying for a credit card. Certain companies charge a higher annual fee than others. Compare the rates of many different companies to make sure you get the one with the lowest fee. Also, do not forget to find out if the APR rate is fixed or variable.
You should feel a bit more confident about using credit cards now that you have finished this article. If you are still unsure, then reread it, and continue to search for other information about responsible credit from other sources. After teaching yourself these things, credit can become a trusted friend.
