Whether it is your first credit card or your tenth, there are several things that should be considered before and after you get your credit card. The following article will help you to avoid the many mistakes that so many consumers make when they open a credit card account. Read on for some useful credit card tips.
When you are getting your first credit card, or any card for that matter, make sure you pay close attention to the payment schedule, interest rate, and all terms and conditions. Many people neglect to read this information, but it is definitely to your benefit if you take the time to read through it.
Create a credit card spending limit for yourself other than the card’s credit limit. Many people think a budget is only for the bills you owe; however, you should also set a budget for credit card usage. A credit card’s available balance should not be considered extra money. Set aside a certain amount that you’re willing to put on your credit card every month. Never go above that amount and make sure to pay it in full every month.
Always monitor your balance. Be sure you know your card’s limit before making purchases. If you go over that limit, you are going to pay more fees than you realize. It is going to take longer to pay down the balance if you keep exceeding your limit.
Don’t use passwords and pins for your cards that can be simply figured out by someone else. When you use something such as when you were born or what your middle name is then people can easily get that information.
Anytime you apply for a credit card, you should always familiarize yourself with the terms of service that comes along with it. This will allow you to know what you can and cannot use your card for, as well as, any fees that you might possibly incur in different situations.
As a general rule, you should avoid applying for any credit cards that come with any type of free offer. More often than not, anything that you get free with credit card applications will always come with some sort of catch or hidden costs that you are sure to regret later on down the road.
The credit card that you use to make purchases is very important and you should try to use one that has a very small limit. This is good because it will limit the amount of funds that a thief will have access to.
If you have poor credit, you might want to look into secured credit cards. They are simply credit cards for which a deposit is necessary to guarantee payment. Functioning in many ways like a debit, your money stands as insurance that you won’t go crazy and max your cards out. This is not a great situation to be in, but it can be a way to dig yourself out of a credit hole. Always using a known company for secured credit. These companies can offer you unsecured cards in the future, which can make your score higher.
Try to reduce your interest rate. Call your credit card company, and request that this be done. Before you call, be sure you know how long you have had the credit card, your overall payment record, and your credit score. If all of these show positively on you as a good customer, then use them as leverage to get that rate lowered.
Be aware of recent credit card laws. For example, companies cannot give retroactive rate hikes. They are not allowed to operate on double-cycle billing schedules either. Check out the laws thoroughly. The two important laws that have come into effect recently are the CARD Act as well as the Fair Credt Billing Act.
Never give out your card number over the phone unless you trust the company and you initiated the call. When receiving unsolicited requests for credit card numbers, be very cautious. There are a lot of scams in the world today that people do in order to get your card number. Tell them you will call them back to be sure they are legit. Find their number yourself.
Verify all fees and charges associated with a potential credit card, rather than just the APR and interest rates. There are also charges like service charges, cash advance fees and application fees. These can make a card seem worthless if they cost too much.
Compare rewards programs before you choose a credit card company. If you plan to use your credit card for a large percentage of your purchases, a rewards program can save you a great deal of money. Every rewards programs is different, it would be best, to research each one before you make a decision.
You should now have a better idea about what you must do to manage your credit card accounts. Put the information that you have learned to work for you. These tips have worked for others and they can work for you to find successful methods to use regarding your credit cards.
