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 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.
Keep track of how much money you are spending when using a credit card. Small, incidental purchases can add up quickly, and it is important to know how much you have spend on them, so you can understand how much you owe. You can keep track with a check register, spreadsheet program, or even with an online option offered by many credit card companies.
If you see any suspicious charges, report them quickly. When you do that, you will give the credit company a good chance of making sure the thief is caught. It will also serve to make sure you are not going to be held accountable for any false charges. A quick call or simple email may be all that is required for you to report a fraudulent charge.
To help you get the maximum value from your credit card, choose a card which provides rewards based on the amount of money you spend. Many credit card rewards programs will give you up to two percent of your spending back as rewards which can make your purchases much more economical.
Keep an eye on mailings from your credit card company. While some might be junk mail offering to sell you additional services, or products, some mail is important. Credit card companies must send a mailing, if they are changing the terms on your credit card. Sometimes a change in terms can cost you money. Make sure to read mailings carefully, so you always understand the terms that are governing your credit card use.
Never, ever use your credit card to purchase something that you cannot afford. A credit card isn’t the magical solution to getting the flat screen TV or new computer that you have always wanted. The interest charges will be exorbitant, and you may not be able to make necessary payments. Just leave this store, think about it for a couple of days, and then make a decision. If you still want to buy it, you should consider the financing offered by the store, since the interest rates are usually lower.
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.
The key to using a credit card correctly lies in proper repayment. Every time that you don’t repay the balance on a credit card account, your bill increases. This means that a $10 purchase can quickly turn into a $20 purchase all due to interest! Learn how to pay it off every month.
An important tip when it comes to smart credit card usage is, resisting the urge to use cards for cash advances. By refusing to access credit card funds at ATMs, you will be able to avoid the frequently exorbitant interest rates, and fees credit card companies often charge for such services.
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 are denied a credit card, find out why. It costs nothing to check the reporting agencies, after you have been denied credit by a card issuer. Recent federal laws require that issuers supply the information that creditors used to deny an applicant. Use this information to improve your score in the future.
Monitor all your card transactions on a regular basis. Many credit card companies offer text alerts for your mobile phone. These alerts will notify you of any irregular activity so you can contact the company immediately. If you find any irregular activity, you should quickly notify the credit card’s issuing bank or the authorities if it comes to that.
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!
