Credit cards are sometimes useful in order to make purchases online as well as transactions made in-person establishments when you don’t want to use cash. If you would like advice regarding credit cards, the information provided in this article will be beneficial to you.
Do not use your credit card to make purchases or everyday items like milk, eggs, gas and chewing gum. Doing this can quickly become a habit and you can end up racking your debts up quite quickly. The best thing to do is to use your debit card and save the credit card for larger purchases.
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.
To help be sure you don’t overpay for a premium card, compare its annual fee to rival cards. The annual fee for a platinum or black card could cost from $100, all the way up to $1,000, depending on how exclusive the card is. If you do not need a premium card, don’t get one.
Take advantage of the fact that you can get a free credit report yearly from three separate agencies. Make sure to get all three of them, so that you can be sure there is nothing going on with your credit cards that you may have missed. There may be something reflected on one that was not on the others.
If you have several credit cards with balances on each, consider transferring all of your balances to one, lower-interest credit card. Almost everyone gets mail from various banks offering low or even zero balance credit cards if you transfer your current balances. These lower interest rates usually last for 6 months or a year. You can save a lot of interest and have one lower payment each month!
Never give in to the temptation to allow anyone to borrow your credit card. You may trust your friend, but it can cause problems. It is never a good idea to let friends use your card. If your friend charges more than you had expected, you may be stuck with over-limit charges as well as a huge credit card bill.
It is best to stay away from charging holiday gifts and other holiday-related expenditures. If you can’t afford it, either save to buy what you want or just buy less-expensive gifts. Your best friends and relatives will understand that you are on a budget. You can always ask ahead of time for a limit on gift amounts or draw names. The bonus is that you won’t be spending the next year paying for this year’s Christmas!
Keep a list of the “lost/stolen card” phone numbers for each of your credit card issuers along with your credit card number for reference. File this list in a safe place with other important papers. If you were to get robbed or lose your cards, this list can come in handy.
Ask your bank to change your interest rate if you do not like it. If they can not lower your rate, look around for a card with a better rate. After you find it, transfer your debt to the new card.
Always thoroughly scrutinize your monthly credit card statements. Try to find any discrepancies in your statement or any false charges. Always inform your issuer of problems as soon as possible. By keeping a close eye on all of your statements, you will prevent inaccurate charges and keep your credit score high.
If you get to a point where you are having a difficult time making the monthly payment on a credit card, then you should destroy the card so that you will not be tempted to use it again. You can still pay it off without having the card in your possession.
When you are juggling several credit cards, it can be worthwhile to select one that you routinely pay off each month. Even if you need to carry a hefty balance on your other cards, having a card that you use and pay off every month can build a stronger credit history.
Shop around for different credit cards. Interest rates and other terms tend to vary greatly. There are also various types of cards, such as cards that are secured which require a deposit to cover charges that are made. Make sure you know what kind of card you are signing up for, and what you’re being offered.
This article should give you some idea about the responsibilities inherent in credit card use. It is impossible to exercise too much caution when it comes to credit card usage, and it is common for people to only realize their mistakes after the fact. Reasonable credit card use will increase your credit score while giving you more spending power.
