Let’s be honest, in this day and age, consumers need all the advice they can get on managing their finances and avoiding the pitfalls presented by over-spending! Credit cards are a huge liability that can wreak havoc on your finances. Continue reading for some great advice on how to properly use credit cards.
Never charge items on credit card to buy something that are beyond your means. While it is okay to use your card for something that you know you will be able to afford to pay in the near future, you should avoid using credit to purchase big ticket items that you are going to run into problems paying for.
It is a good idea to have a couple of open credit card accounts open. This is especially helpful when building a good credit score, especially if you don’t carry a balance from month to month. However, if you open more than three, a lender may think that looks bad when pulling up your personal credit bureau report.
Always review the fine print.If you have a pre-approved credit offer, or a salesperson offers you help in getting the card, make sure you know all the details involved.It’s important to understand what interest rates and will be in the future. You must also be sure to learn of grace periods and any fees.
Make sure you know what your card’s interest rate will be with a given credit card. You simply must understand the interest rate before agreeing to accept a credit card.
It wastes money to have to pay an annual fees when there are lots of credit cards that don’t charge no fee.
Never use a credit card to buy purchases that you can’t afford. Just because a nice new TV sounds like a great idea, does not mean it is within your budget. You will end up paying a lot of interest and your monthly payments that you could not pay for. Make decisions only after thinking them over for a couple of waiting 48 hours before making any large purchases on your card. If you decide that it is still worth purchasing, then the store probably offers a financing plan that gives you a lower interest rate.
Never give your card number out over the phone to someone who has called you. Scammers commonly use this trick all the time. Only give your card number with trusted businesses and with the company that owns the credit card. Never give your numbers to someone who may call you on the phone. No matter who a caller says they represent, you do not know who they are.
Be weary if you’re receiving unsolicited messages that require you to give out your credit card number. There are numerous scams around that want your credit card number. Be diligent and protect your card number.
You may be able to get better interest rates by negotiating with your credit card company to obtain a lower rate.
Use cards if you don’t wish to lose. Many creditors close down accounts that are inactive for a certain period of time. The best way to ensure your account stays open is by using the cards that you want the most on a regular basis. Just don’t forget that you pay them off to avoid debt.
While you may be a little tempted to purchase most things with a credit card, it isn’t always ideal for small purchases. You may have to pick up extra items you don’t really need to reach a minimum charge requirement for using your credit card. Only use a card if you’re making a purchase is for at least 10 dollars.
Read all the terms and conditions before applying for any secured card.
Never pay off credit card bill with that credit card. The charges that are associated with this “trick” simply make the problem worth as time goes on.
Request reduced fees and lower interest if you run into financial difficulty. Credit companies will raise your interest rate and charge fees if your payment is not on time. You can reduce these charges reduced if you contact your card company.
There are a lot of financial pitfalls waiting out there for the unwary consumer; punitively high interest charged on credit card debt is certainly one of them! This article has discussed the best ways in which credit cards can be used. It is hoped that you can apply this information to your financial life.