Let’s be honest, in this day and age, consumers need all the advice they can get on managing their finances and avoiding the pitfalls presented by over-spending! Credit cards are a huge liability that can wreak havoc on your finances. Read the following tips to learn how to properly utilize your bank cards.
You can save time and money by setting up automatic payments through your bank or credit card company.
Know what interest rate your credit card comes with. You simply must understand the interest rate before you agree to accept a credit card.
Be sure you go over the fine print on a credit card account before using it. The print might be tiny, but it is important to read it carefully.
It wastes money to have to pay an annual fee when there are many credit card companies that don’t charge these fees.
Retain a sales receipt when you utilize your credit card online. Keep these receipts and compare them with your statement to make sure it is the amounts match. File a dispute if there is any discrepancy.This smart technique will serve you well and ensure that you are not overcharged for your purchases.
Don’t give into someone else wanting to borrow your credit card. Even though a good friend might have a need, that should still be avoided. It may lead to over-limit charges if your friend spends more on the card than you authorized.
Keep an eye on the status of your credit rating. Most credit card issuers consider 700 as the cut off limit for determining a good credit. Use your credit properly to maintain this level, or if you’re not there, to reach that level. When you have a 700 or higher credit score, you get some of the best offers available.
Keep a list of phone numbers for your credit card companies and your own account numbers as well as contact numbers. Keep this list in a safe place, like a safety deposit box, separate from all of your cards. The list is useful as a way to quickly contact lenders in case of a lost or if they are stolen.
Most experts agree that the maximum limit on your charge cards should not be more than 75% of your monthly salary. If you have gone above that amount, try to repay them as quickly as possible. This is because of the amount of interest will just keep growing bigger and bigger.
Credit Score
Do not close too many credit accounts. Although you may think doing this will help you raise your credit score, it could actually hurt your credit score. This is because you are actually subtracting from the total amount of credit you have, and that means that you will have a lower ratio between your total credit and the amount you owe.
Compare the credit card debt shown on your statements to make sure they match up.
Some people try not to get credit cards is the best thing they can do for their credit. You should always have at least one credit card if you want to build credit. Use this and pay off each month. If you have no credit history, your credit score will be lower and potential lenders can not determine if you pay off your debts.
Credit Card
Ask your credit card provider to decrease your credit card. Some companies are willing to lower interest rates if the customer has had a positive credit relationship is in good standing. It is free to ask and can save you a lot of money in the end.
You should not switch credit card account unless it is unavoidable situation. The amount of time you have accounts open impacts your credit score. Keeping your accounts open whenever possible is one element of building a good credit score.
Some fees that you may overlook include the annual fee, excessive late charges, which may make you think twice about having the card.
Check through your old credit card accounts and consider closing any that aren’t in use. Closing old accounts can prevent fraudulent activity on those accounts. You can even close accounts that have balances if you don’t want to use them anymore. You can still pay keep paying off the card’s balance until there is nothing left to repay.
Don’t rush to use rewards cards exclusively and forget about your debit card. Charging all of your purchases may very well get you a free flight.
Always make card bill on time. Most companies will charge late fees if you don’t do this. If you miss more than one payment, you could see a regular rise in fees being charged.
You may also have to pay costly fees if you miss a late fee.
Be smart about using your credit card purchases.
Think about getting a credit card that offers cash back on gas and grocery purchases. These types of cards are great for everyday purchases. You can even get $60 and up back each month by using this card for buying what you need every month! This can be saved up and then used to pay for a nice vacation at the end of the year. Be wary of not carrying a balance on these cards, as paying interest rates negates the reward!
As said in the beginning, the ups and downs of the financial world can be confusing to consumers. This article has mentioned the best methods for proper credit card use in an everyday life.
