Credit cards can be a great help in your life for helping your manage your finances. Not only are they good for building good credit, but they also can give you a backup plan, in case of times where you incur unintended financial burdens. Check out this article for great information about credit cards.
Open and go over everything that is sent to your mail or email about your card whenever you get it. Written notice is all that is required of credit card companies before they change your fees or interest rates. If you don’t wish to comply, you are allowed to cancel that credit card.
When you buy with a credit card on the Internet, keep copies of your receipt. Keep such receipts until your bill arrives so that you can verify the accuracy of the amount charged. If it differs, file a dispute of charges with the company as soon as possible. This smart technique will serve you well and ensure that you never get overcharged for your purchases.
Everyone gets credit card offers in the mail. Getting one envelope after another in our mail from credit card companies, imploring us to sign up with them. Depending on the time frame, you may or may not be in the market. Always rip up any credit card mail that you plan on throwing 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.
Make sure that any websites that you use to make purchases with your credit card are secure. Sites that are secure will have “https” heading the URL instead of “http.” If you do not see that, then you should avoid purchasing anything from that site and try to find another place to buy from.
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.
Most analysts state that a credit limit should be no greater than 75% of a monthly salary. Taking on a card, whose limit is greater than this amount, may leave you struggling to pay the bill. The interest on that will soon be way over your head.
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.
Do not close credit accounts. While it might seem like closing accounts would help improve your credit score, doing so can actually lower it. The reason is due to the fact that you’re subtracting from the credit amount that you have. This lowers your ratio between your credit and the amount you owe.
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.
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.
Don’t place your credit card number on anything that is visible to the public. This includes on the backs of postcards, on the outside of envelopes, and on publicly visible (and unsecure) areas of social media sites like Facebook, LinkedIn and Twitter. Sharing your information on mail or on social media can lead to serious credit theft.
It is a good rule of thumb to have two major credit cards, long-standing, and with low balances reflected on your credit report. You do not want to have a wallet full of credit cards, no matter how good you may be keeping track of everything. While you may be handling yourself well, too many credit cards equals a lower credit score.
Pick one credit card with the best rewards program, and designate it to regular use. This card can be used to pay for gas, groceries, dining out, and shopping. Be sure to pay it off each month. Designate another card for charges like, vacations for the family to be sure you do not overdo it on the other card.
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 earlier, credit cards can be a great thing to have, not only to help with your long term needs, but also with things that may come up in the near future. Be sure to follow the information provided in this article for guidance on managing your credit cards.
