Anyone can build credit, while managing their finances, with a credit card. Consumers should be well-informed about credit cards so that they can make the right decisions. The following article discusses some of the best basic credit card information for consumers.
Before you choose a credit card company, be sure that you compare interest rates. There is no standard when it comes to interest rates, even when it is based on your credit. Every company uses a different formula to figure what interest rate to charge. Be sure that you compare rates, to ensure that you get the best deal possible.
Any fraudulent charges made using your credit should be reported immediately. This will give the company a greater possibility of catching the perpetrator. It’s also the most efficient way to limit the liability you face for the incurred charges. Any charges that you did not make need to be reported to your credit company with a phone call or a high priority email.
You should always try to negotiate the interest rates on your credit cards instead of agreeing to any amount that is always set. If you get a lot of offers in the mail from other companies, you can use them in your negotiations, to try to get a much better deal.
It is too easy for many people to improperly use their credit cards. Sometimes going into debt is necessary and understandable. This privilege is often abused, causing people to become mired in payments and unable to keep up. It is wise to pay off your balance every month. This way when you use credit and keep a balance that’s low, you will improve your credit score as well.
Do not sign up for a credit card because you see it as a way to fit in or as a status symbol. While it may seem like fun to be able to pull it out and pay for things when you have no money, you will regret it, when it is time to pay the credit card company back.
Be wise with your use of credit cards. Limit your spending and only purchase things with your card that you can afford. Before any purchase, make sure you have the money to pay back what you’re going to owe; this is a good mindset to have. If you use your card for more than you can afford, it is easy for debt to begin accumulating and your balance to grow even faster.
If you have a credit card account and do not want it to be shut down, make sure to use it. Credit card companies are closing credit card accounts for non-usage at an increasing rate. This is because they view those accounts to be lacking in profit, and therefore, not worth retaining. If you don’t want your account to be closed, use it for small purchases, at least once every three months.
Never use a password or pin code for your credit card that is really easy for people to figure out. It is a huge mistake to use something like your middle name, date of birth or the names of your children because this is information that anyone could find out.
Don’t open too many credit card accounts. A single person only needs two or three in his or her name, in order to get a good credit established. More credit cards than this, could actually do more damage than good to your score. Also, having multiple accounts is harder to keep track of and harder to remember to pay on time.
Never allow yourself to open too many credit card accounts. Instead, find two or three that really work for you and stick to those. Having too many credit cards can harm your credit and it makes using money that you do not have that much easier. Stick to a couple cards and you will remain safe.
Make your credit card payments on time and in full, each and every month. Most credit card companies will charge an expensive late fee if you are even a day late. If you pay your bill 30 days late or more, creditors report this late payment to the credit bureaus.
Don’t ever fax other people a credit card number. A fax can be left in an office for a long time while anyone can get the card number. Even a small amount of information can give other people the ability to use your card. That can set you up for fraudulent activity on your account, as well as all the problems that go along with that.
As you have seen, credit cards can be a great help in building or re-building a person’s credit, as well as a tool to help one learn to make wise choices with their money. But before one can properly grasp how to handle dealing with credit, the first step is learning a bit about finances in general, particularly credit cards. The tips in the text above are designed to help individuals make the right choices when dealing with credit.
