Since their inception, there have been people who have had difficulties associated with credit cards. 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.
Don’t fall for the introductory rates on credit cards when opening a new one. Be sure to ask the creditor what the rate will go up to after, the introductory rate expires. Sometimes, the APR can go up to 20-30% on some cards, an interest rate you definitely don’t want to be paying once your introductory rate goes away.
In order to maintain a solid credit score, always pay your balances by the due date. Late payments can cost you a lot in fees. and in the hit to your credit score. Avoid this problem by setting up automatic payments to come out of your bank account on the due date or earlier.
If you find that you have spent more on your credit cards than you can repay, seek help to manage your credit card debt. It is easy to get carried away, especially around the holidays, and spend more than you intended. There are many credit card consumer organizations, that can help get you back on track.
Never write down your password or pin number, for any reason. Memorizing your PIN or password is essential, and it helps to ensure that only you can access your account. Writing your pin down and placing it in a similar area where you place your card is not a good thing to do.
Write down the card numbers, expiration dates, and customer service numbers associated with your cards. Place it in a secure place, like a deposit box, away from your other credit cards. Having such a list will enable you to take quick action and have all the information handy, when it is needed.
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 are not happy with your interest rate, ask your bank to change it. Make it clear you are considering closing your account, and if they still won’t help you out, look for a better company. After you find a better rate, do not hesitate to make a change.
Always avoid closing an account. It might seem like this would be good on your credit rating, but it can actually make things worse. This is because you are actually subtracting from the total amount of credit you have, which then lowers the ratio between that and what you owe.
Always pay your credit card bill on time. Paying credit card bills late, can result in addition charges on your next bill, such as late fees and interest charges. In addition to this, late payments can adversely affect your credit score. This can negatively affect your ability to make purchases, and receive loans in the future.
Try not to use credit cards for everyday purchases such as groceries, gas, and clothing. These are things you will most likely need again, before you can pay the balance off. You will end up with a pile of credit card debt that will keep on growing. When you need these types of items, leave your credit cards at home.
Do not close multiple accounts at one time. Close them down slowly, one by one, in order to avoid doing damage to your credit rating. Also, be sure to consider whether you will find yourself in need of those credit cards in the future. A long standing credit card account is better for your credit report than the closing and opening of many different credit cards.
When you use a credit card to make a reservation, (e.g. at a hotel, or for plane tickets) you should always complete the transaction using the same card. Paying in cash, or using a different card opens you up to being charged twice for the same service. Even if you are not double-charged, removing the reservation charge from your card can take a long time.
If you are right at your due date and have forgotten to make a payment, call and see if payment by phone is an option. Most credit card companies offer this service for a fee. Though you will have to pay a little bit to use this service, it will certainly be less than the fee amount you will have to pay, if you make a late payment.
A great credit card tip is to set your own limit, below that of your card so that you always have some place to turn to, in the event of an emergency. This will also keep you from spending more than you can afford, which will keep your credit manageable.
Ensure you understand a rewards program, especially if you solely picked the card to make use of this rewards program. Some rewards have expirations dates so you want to make sure you can use the reward before it expires.
In conclusion, it can be frustrating and confusing to deal with credit cards. If you know how to use them, though, they do not have to cause you trouble. You can better handle your credit cards with this article’s advice.
