In this “consumer beware” world that we all live in, any sound financial advice you can get is helpful. Especially, when it comes to using credit cards. The following article will offer you that sound advice on using credit cards wisely, and avoiding costly mistakes that will have you paying for a long time to come!
When making purchases with your credit cards you should stick to buying items that you need instead of buying those that you want. Buying luxury items with credit cards is one of the easiest ways to get into debt. If it is something that you can live without you should avoid charging it.
You should always try to negotiate the interest rates on your credit cards instead of agreeing to any amount that is always set. If you get a lot of offers in the mail from other companies, you can use them in your negotiations, to try to get a much better deal.
When you are looking over all of the rate and fee information for your credit card make sure that you know which ones are permanent and which ones may be part of a promotion. You do not want to make the mistake of going for a card with very low rates and then they balloon shortly after.
Make sure you know what your interest rate will be with a given credit card. It is essential that you find out before you ever sign up for the card. If you are unaware of the number, you might pay a great deal more than you anticipated. If the interest rate is too high, you might find yourself carrying a bigger and bigger balance over each month.
Don’t pay any fees upfront when you are getting a credit card. The legitimate card issuers will not ask for any money up front, unless you’re getting a secured credit card. When you are applying for a secured card, be sure to find out how the deposit is going to be used.
Don’t automatically run out and get a bit of plastic as soon as you are of age. Although people love to spend and have credit cards, you should truly understand how credit works before you decide to establish it. Get used to your responsibilities as an adult prior to dealing with a credit card.
If you get a call asking for your credit card number, do not give it out. Scammers use this trick all the time. Be sure to give you number only to businesses that you trust. Do not provide it to the people that contact you. No matter who they claim to be, you do not know who they are.
Never believe that a credit card’s interest rate is fixed. Card companies use different interest rates for competition purposes. If you’re unhappy with your rate of interest, contact your bank and tell them you would like them to lower it.
Avoid giving out your credit card information by fax or phone. A fax could sit in a basket in some office for hours or days, letting everyone in the office know your credit card details. If any of those people is a thief, you are in trouble. If a criminal steals your credit card number, your credit could be seriously damaged.
Pay close attention to all of the interest rates on your credit cards. Many cards charge you different rates depending on the type of transaction you execute. Cash advances and balance transfers commonly command a higher rate than ordinary purchases. You must keep this in mind before you begin shifting money on and off various cards.
Keep multiple credit card accounts open. Having multiple credit cards will keep your credit score healthy, as long as you pay on them consistently. The key to keeping a healthy credit score with multiple credit cards is to use them responsibly. If you do not, you could end up hurting your credit score.
If you are able to do so, don’t get a card that has an annual fee. Annual fee cards are generally not offered to people with good credit scores. High fees will negate any benefits a card offers. Always do your calculations first. Credit card companies don’t advertise annual fees, as they are usually a hidden cost. Get your reading glasses out! Learn if the benefits outweigh the fees. Normally, they don’t.
Before opening a credit card, make sure you will be responsible. Some people are not able to control their spending. These are the type of people who should think twice about having a credit card. When they open an account, they’re opening up the possibility of extreme financial hardship.
Don’t apply for a bunch of credit cards at one time. Applying for too much credit at once, makes you look desperate to creditors and can, therefore, harm your credit score. Apply for one credit card and use it sparingly, instead of applying for a lot of credit cards at one time.
Keep a list of all your credit card information in a safe place. List all of your credit cards along with the credit card number, expiration date and phone number, for each of your cards. By doing this you will always have all of your credit card information in one place should you need it.
Do not make discretionary purchases if you cannot afford to substantially pay down your credit card debt each month. If you are making these types of purchases regularly, then you run the risk of not being able to ever pay down the debt, and also you will put yourself in a bad situation should an unexpected emergency crop up.
Hopefully the above article has given you the information necessary to avoid getting in to trouble with your credit cards! It can be so easy to let our finances slip away from us, and then we face serious consequences. Keep the advice you have read here in mind, the next time you go to charge it!
