When credit cards are good they are very good, but when they are bad they are evil. Credit card accounts, like many things, can be hard to maneuver if you do not have good information. The following advice will teach you what you need to know to use credit cards properly.
Do not lend your credit card to anyone. Credit cards are as valuable as cash, and lending them out can get you into trouble. If you lend them out, the person might overspend, making you responsible for a large bill at the end of the month. Even if the person is worthy of your trust, it is better to keep your credit cards to yourself.
Avoid being the victim of credit card fraud by keeping your credit card safe at all times. Pay special attention to your card when you are using it at a store. Double check to make sure you have returned your card to your wallet or purse, when the purchase is finished.
Credit cards are often essential for young people or couples. Even if you don’t feel comfortable holding a large amount of credit, it is important to actually have a credit account and have some activity running through it. Opening and using a credit account helps you to build your credit score.
If you have a credit card account and do not want it to be shut down, make sure to use it. Credit card companies are closing credit card accounts for non-usage at an increasing rate. This is because they view those accounts to be lacking in profit, and therefore, not worth retaining. If you don’t want your account to be closed, use it for small purchases, at least once every three months.
Read all correspondence from your credit card company and other financial institutions right away. A credit card company, if it provides you with written notifications, can make changes to membership fees, interest rates and fees. You can cancel your account if you don’t agree with this.
Remember that you must pay back what you have charged on your credit cards. This is only a loan, and in many cases, it is a high interest loan. Carefully consider your purchases prior to charging them, to be sure that you will have the money to pay them off.
It should be obvious, but many people fail to follow the simple tip of paying your credit card bill on time each month. Late payments can reflect poorly on your credit report, you may also be charged hefty penalty fees, if you don’t pay your bill on time.
Keep tabs on your credit score. Most companies consider a credit, or FICO, score of 700 to be the cutoff for good credit. Strive to maintain or reach that level by using your credit properly. This will enable you to take advantage of the very best credit offers, including low rates of interest and fantastic incentives.
Students who have credit cards, should be particularly careful of what they use it for. Most students do not have a large monthly income, so it is important to spend their money carefully. Charge something on a credit card if, you are totally sure you will be able to pay your bill at the end of the month.
Many companies advertise that you can transfer balances over to them and carry a lower interest rate. This sounds appealing, but you need to carefully consider your options. Think about it. If a company consolidates a higher amount of money onto one card and then the interest rate spikes, you are going to have a hard time making that payment. Know all the terms and conditions, and be careful.
If you ask an expert, they will recommend that you should not have a credit limit greater than three-quarters of the income you bring in every month If your limit is higher than this, try to pay it off quickly. This is mainly because of the amount of interest you pay can quickly get out of control.
Before you pick a credit card be sure that it accepted at most businesses in your area. There are only a few credit card companies that are accepted nationwide, so be sure you know which ones these are if you plan to purchase things around the country. Also, if you plan to travel abroad, be sure you have a card that is accepted where you might travel as well.
Find out if the interest rate on a new card is the regular rate, or if it is offered as part of a promotion. Many people do not realize that the rate that they see at first is promotional, and that the real interest rate may be a significant amount more than that.
To avoid excessive fees, always read the fine print of any credit card offer you are considering. Many offers come with a low introductory APR and can be quite enticing. However, further review of the fine print may reveal that that low rate will be increased to a less than appealing rate in as little as 6 months or a year.
Make sure a note that indicates your purchases is kept in an area in your home where it can be seen. It’s important to be aware of what your balance is. It is far too easy to ignore our own behavior and let our credit card spending escalate until it is out of control.
Many people have been frustrated by the complications of using their credit cards. However, if you have the correct knowledge, living with credit cards isn’t all that difficult. You can better handle your credit cards with this article’s advice.
