Credit cards can help you to manage your finances, as long as you use them appropriately. However, it can be devastating to your financial management if you misuse them. For this reason, you may have shied away from getting a credit card in the first place. However, you don’t need to do this, you just need to learn how to use credit cards properly. Read on for some tips to help you with your credit card use.
When you are unable to pay off one of your credit cards, then the best policy is to contact the credit card company. Letting it just go to collections is bad for your credit score. You will find that most companies will let you pay it off in smaller amounts, as long as you don’t keep avoiding them.
Do not accept the first credit card offer that you receive, regardless of how good it sounds. While you may be tempted to jump on an offer, you do not want to take any chances that you will end up signing up for a card and then, seeing a better deal shortly after from another company.
Make friends with your credit card issuer. Most major credit card issuers have a Facebook page. They might offer perks for those that “friend” them. They also use the forum to address customer complaints, so it is to your advantage to add your credit card company to your friend list. This applies, even if you don’t like them very much!
If you have a credit card with high interest you should consider transferring the balance. Many credit card companies offer special rates, including 0% interest, when you transfer your balance to their credit card. Do the math to figure out if this is beneficial to you before you make the decision to transfer balances.
Never give out your credit card number to anyone, unless you are the person that has initiated the transaction. If someone calls you on the phone asking for your card number in order to pay for anything, you should ask them to give you a way to contact them, so that you can arrange the payment at a better time.
Do not use one credit card to pay off the amount owed on another until you check and see which one has the lowest rate. While this is never considered the best thing to do financially, you can occasionally do this to make sure you are not risking getting further into debt.
Be smart with how you use your credit. Many people are in debt, due to taking on more credit than they can manage or else, they haven’t used their credit responsibly. Do not apply for any more cards unless you need to and do not charge any more than you can afford.
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.
If you are having trouble with overspending on your credit card, there are several ways to save it only for emergencies. One of the best ways to do this is to leave the card with a trusted friend. They will only give you the card, if you can convince them you really need it.
Be sure not to leave any any portions blank when you sign a receipt at a store or restaurant. Make sure to write a dark line right through the tip area of your receipt so that it cannot be filled in by anyone else. Keep a copy of the receipt so that you can verify that the amount on your statement matches it.
It is always worth your time to ask for a lower interest rate. If you maintain a good history with your company and have always made payments on time, you should be able to come up with a better rate. A simple phone call may be all it takes in order to get a more competitive rate and save you money.
If you are going to make purchases over the Internet you need to make all of them with the same credit card. You do not want to use all of your cards to make online purchases because that will increase the chances of you becoming a victim of credit card fraud.
Hopefully, you can now see that credit cards are not scary financial tools. Do not let your concerns about your credit score keep you from using credit cards now that you know more about their proper use. Take the advice you have learned here, and use credit cards as they were intended – to improve your financial situation.
