Credit card usage is an almost universal fact of modern life. There can be no denying that credit cards represent a degree of convenience and flexibility that is hard to beat. However, the key to smart credit card utilization is knowledge. By reading the ideas in this piece, it is possible to acquire the breadth of understanding necessary to make wise financial decisions.
Report any fraudulent charges on your credit cards right away. By doing so you give the credit card company the best chance of catching the thief. Doing this also helps ensure that you will not have to pay for such charges. It usually just takes a brief email or phone call to report fraudulent charges.
Do not lend your credit card to anyone. Credit cards are as valuable as cash, and lending them out can get you into trouble. If you lend them out, the person might overspend, making you responsible for a large bill at the end of the month. Even if the person is worthy of your trust, it is better to keep your credit cards to yourself.
When it comes to credit cards, it is imperative that you read the contract and fine print. Make sure you know exactly what is being offered in that pre-approved credit card before you take advantage of it. It’s very important to understand what interest rates and payment schedules you’ll be dealing with. Also, know what fees are associated with the account and if there are any grace periods.
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.
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.
If anyone calls and asks for your card number, tell them no. Scammers will often use this ploy. You should give your number only if you call a trusted company first to pay for something. Never provide your numbers to people who make the call to you. It doesn’t matter who they say they are if you don’t know the person.
Have a running list with credit card account numbers and lender’s emergency contact phone numbers. Place it in a secure place, like a deposit box, away from your other credit cards. This list is going to help you if you ever get robbed and they get stolen or if you lose them somewhere along the way.
Don’t close accounts. It might seem obvious, so you can increase your credit score; however, if you close accounts, it can turn out to be bad for the score. The reason is because the amount of available credit you have is lowered and that will be balanced against what you owe.
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.
Once you acquire a credit card, you should work to keep it active for the longest period possible. Frequent switches to new companies is not wise unless you find it absolutely necessary. The longer your positive credit history is with a creditor, the better your credit score. One component of building your credit is maintaining several open accounts if you can.
Before you pick a credit card be sure that it accepted at most businesses in your area. There are only a few credit card companies that are accepted nationwide, so be sure you know which ones these are if you plan to purchase things around the country. Also, if you plan to travel abroad, be sure you have a card that is accepted where you might travel as well.
If you are carrying a high balance on your credit card, do all you can to lower it. Having high balances on various cards can make it difficult to get credit for other purposes. A poor credit score can hurt your chances of buying a car, renting an apartment and getting good insurance rates. It can even make it harder to get the job you want.
Few people are totally unfamiliar with credit cards, as they are a staple in almost everyone’s financial lives. The lynchpin of smart, strategic utilization of credit cards, however, is a complete understanding of the ways in which they work. Keep the concepts in this article close at hand, and you will have the tools necessary to craft a responsible, prosperous financial plan using your credit cards.
