Credit cards can be extremely dangerous. By spending too much, you are opening yourself up to high borrowing costs and interest rates. But, when used the right way, credit cards can provide a person with convenience, a restful mind, and sometimes, rewards. Read this article to discover some of the advantages of credit cards.
When it comes to credit cards, always try to spend no more than you can pay off at the end of each billing cycle. By doing this, you can help to avoid high interest rates, late fees and other such financial pitfalls. This is also a great way to keep your credit score high.
If you do not have credit and want a credit card, consider getting a co-signer. A parent, friend, sibling or other trusted person with previously established credit can be a co-signer. It’s important to know that being a co-signer means that person is liable for the credit card bill in full if you don’t pay it. This is a fine way to start building up your credit score with a credit card of your own.
Learn how to manage your credit card online. Most credit card companies now have online resources where you can oversee your daily credit actions. These resources give you more power than you have ever had before over your credit, including, knowing very quickly, whether your identity has been compromised.
When signing credit card receipts in stores, don’t leave blank spaces. Mark up the line for the tip, so that no one can later put an amount on it. Additionally, it’s a good idea to verify the information from all receipts with your monthly statement.
Make sure you are consistently using your card. You do not have to use it frequently, but you should at least be using it once a month. While the goal is to keep the balance low, it only helps your credit report if you keep the balance low, while using it consistently at the same time.
Each month when you receive your statement, take the time to look over it. Check all the information for accuracy. A merchant may have accidentally charged a different amount or may have submitted a double payment. You may also find that someone accessed your card and went on a shopping spree. Immediately report any inaccuracies to the credit card company.
Never apply for more credit cards than you actually need. It’s true that you need a few credit cards to help build your credit, but there is a point at which the amount of credit cards you have is actually detrimental to your credit score. Be mindful to find that happy medium.
Watch rewards programs. These programs are quite popular with credit cards. You can earn things like cash back, airline miles, or other incentives just for using your credit card. A reward is a nice addition if you’re already planning on using the card, but it may tempt you into charging more than you usually would just to get those bigger rewards.
If you go to make a purchase with your credit card and you are told that there will a surcharge for using that payment method, you can refuse to pay it and demand they accept your purchase. Many credit card companies do not allow merchants to impose fees, so you should check out the policies of your card company.
It goes without saying, perhaps, but always pay your credit cards on time. To be able to follow this simple rule, do not charge more than you afford to pay in cash. Credit card debt can quickly balloon out of control, especially, if the card carries a high interest rate. Otherwise, you will find that you cannot follow the simple rule of paying on time.
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.
When you receive a replacement credit card in the mail, cut up your old one, and throw it away immediately. This can prevent your old card from becoming lost, or stolen, allowing someone else to get hold of your credit card number, and use it in a fraudulent way.
Watch each of your credit transactions carefully. You could register for mobile alerts if they are offered to you. That way, if any unusual activity takes place, you can look into it right away. If you notice any suspicious activity with your account, be sure to contact your bank, and if necessary, the police.
Keep a tally of your credit card charges, and post it in a prominent spot of your home. A note in a visible spot will keep your spending at the front your mind and help you know your financial situation at any given time. We often end up spending way too much before we know it, when this could have been prevented by self-monitoring.
Never give your credit card number or information to any company that you are not familiar with. A company may appear to be legitimate, but you never know what may happen behind closed doors. If you do not feel comfortable with a certain company, only use cash when making purchases from them.
Don’t pay upfront fees for your credit cards unless you are seeking a credit card that is secured. Any company asking for cash before the card is probably not a reputable company. Additionally, you shouldn’t pay anyone to get you a card. If your credit is good, you can get a card by yourself.
As you can see from the above tips and techniques, credit cards offer a myriad of benefits. You can improve your quality of life by having funds available for emergencies or earning rewards. Take the information that has been given to help you gain success with your cards.
