Credit cards can be a wonderful financial tool that enables us to make online purchases or buy things that we wouldn’t otherwise have the cash on hand for. Smart consumers know how to best use credit cards without getting in too deep, but everyone makes mistakes sometimes, and that’s really easy to do with credit cards. Keep reading for some solid advice on how to best use your credit cards.
Consumers should shop around for credit cards before settling on one. Many different credit cards are available, each offering a different interest rate, annual fee, and some, even offering bonus features. By shopping around, an individual can find one that best meets their needs. They can also get the best deal when it comes to using their credit card.
Carefully consider those cards that offer you a zero percent interest rate. It may seem very alluring at first, but you may find later that you will have to pay sky high rates down the road. Learn how long that rate is going to last and what the go-to rate will be when it expires.
Sign each credit card as soon as you receive it, as most people don’t do this, which makes stolen cards very easy to use. A lot of places need a signature so they can match it to your card, which makes it safer to buy things.
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
Don’t ever use passwords or pin codes that are easily figured out by strangers when setting up your credit card options. Using something familiar, such as your birth date, middle name or your child’s name, is a big mistake since this information is readily available.
To save money, don’t hesitate to negotiate a lower interest rate with the company associated with your credit cards. If you have a strong credit rating and have always made payments on time, an improved interest rate might be yours for the asking. Just by making one phone call, you might save yourself some money in the form of an improved and competitive rate.
If you are having a problem getting a credit card, consider a secured account. A secured credit card will require you to open a savings account before a card is issued. If you ever default on a payment, the money from that account will be used to pay off the card and any late fees. This is a good way to begin establishing credit, so that you have opportunities to get better cards in the future.
If you do a lot of traveling, use one card for all of your travel expenses. If it is for work, this allows you to easily keep track of deductible expenses, and if it is for personal use, you can quickly add up points towards airline travel, hotel stays or even restaurant bills.
Many people, especially when they are younger, feel like credit cards are a type of free money. The fact is, they are exactly the opposite, paid money. Remember, every time you use your credit card, you are basically taking out a micro-loan with incredibly high interest. Never forget that you must repay this loan.
Compare rewards programs before you choose a credit card company. If you plan to use your credit card for a large percentage of your purchases, a rewards program can save you a great deal of money. Every rewards programs is different, it would be best, to research each one before you make a decision.
Be aware that you can still have a credit card, even if your credit is not up to par. There are basically two choices to pick from. You could either get yourself a secured card or sign up to be an authorized user on the credit card of a family member or partner.
If you opt to close a credit card account, always make sure to destroy the card. It is safest to destroy it because otherwise, it could possibly end up in the wrong hands and be used to open the account and resume spending.
Stay away from any card that imposes an annual fee. Typically, cards without annual fees are available to those with solid credit histories. Annual fees can make any rewards you earn not worth it. Check the math. Credit card companies don’t advertise annual fees, as they are usually a hidden cost. If you need to, use your reading glasses. Take a look at whether the fees outstrip the probable benefits. Most of the time, they do not.
If you use your credit cards to pay for gas, do not run too close to your spending limit if you have a purchase coming up. Many gas stations will put a $75 hold on your credit card for a few days, eating up your available space, meaning you can not charge other things.
Try your best to use a prepaid credit card when you are making online transactions. This will help so that you do not have to worry about any thieves accessing your real credit card information. It will be much easier to bounce back if you are scammed in this type of situation.
As stated previously, credit cards can be quite useful, but they can also hurt us when we don’t use them right. Hopefully, this article has given you some sensible advice and useful tips on the best way to use your credit cards and manage your financial future, with as few mistakes as possible!
