Is it possible to use credit cards responsibly, or do you feel as though they are only for the fiscally brash? If you believe that it is impossible to use a credit card in a healthy manner, you are mistaken. This article has some great tips on responsible credit usage.
Be wary of late payment charges. Many of the credit companies out there now charge high fees for making late payments. Most of them will also increase your interest rate to the highest legal interest rate. Before you choose a credit card company, be sure that you are fully aware of their policy regarding late payments.
Avoid using credit cards to buy something that is more than you would ever dream of affording with cash. It’s fine to use credit cards to stretch out the payments for an item you can afford, but refrain from making a major purchase that you couldn’t afford otherwise.
Keeping several lines of credit open is helpful to your credit profile. This will help build your credit score, especially if you are able to pay the cards in full every month. Having tons and tons of credit cards, however, will not look very good to lenders.
Do not use your credit cards to make emergency purchases. Many people believe that this is the best use of credit cards, but the best use is actually for things that you purchase on a regular basis, like groceries. The key is, to only charge things that you will be able to pay back in a timely manner.
Do not consider using a credit card from a retail store unless you shop there regularly. When stores submit an inquiry into your credit history for a card, this gets reported on your credit report whether or not you ultimately get the card. Too many inquiries on your credit can lower your credit rate.
It is very easy to mishandle credit card usage. It can be okay to get into debt every once in a while; however, many people just get in way over their heads and can’t afford the monthly payments associated with their bills. The best thing to do is to keep your balance paid off each month. That way you are using credit, keeping a low balance, and improving your credit score all at the same time.
Shop around for a card. Interest rates and terms can vary widely. There are also various types of cards. There are secured cards, cards that double as telephone calling cards, cards that let you either charge and pay later or they take out that charge from your account, and cards used only for charging catalog merchandise. Carefully look at the offers and know what you need.
Avoid being the victim of credit card fraud by keeping your credit card safe at all times. Pay special attention to your card when you are using it at a store. Double check to make sure you have returned your card to your wallet or purse, when the purchase is finished.
Don’t pay any fees upfront when you are getting a credit card. The legitimate card issuers will not ask for any money up front, unless you’re getting a secured credit card. When you are applying for a secured card, be sure to find out how the deposit is going to be used.
Keep an eye on your credit cards even if you don’t use them very often. If your identity is stolen, and you do not regularly monitor your credit card balances, you may not be aware of this. Check your balances at least once a month. If you see any unauthorized uses, report them to your card issuer immediately.
Be sure you check regularly to see if anything in your conditions and terms changes. It is not uncommon for issuers to change terms and conditions with relative frequency. Many times, these changes are worded in a way you may not understand. Read each line to see how you will be affected by these changes.
Always make a copy of receipts made from online purchases. Hold onto the receipt until you get your bill to make sure that the company you purchased from charged you the correct amount. File a dispute with your card company if there is any discrepancy. This is a fantastic way to be sure that you’re never being charged too much for what you purchase.
Consider unsolicited credit card offers very carefully before you accept them. If an offer that comes to you looks good, read all the fine print to make sure you understand the time limit for any introductory offers on interest rates. Also, be aware of fees that are required for transferring a balance to the account.
Make sure that any websites that you use to make purchases with your credit card are secure. Sites that are secure will have “https” heading the URL instead of “http.” If you do not see that, then you should avoid purchasing anything from that site and try to find another place to buy from.
You should try and limit the number of credit cards that are in your name. Too many credit cards is not good for your credit score. Having several different cards can also make it more difficult to keep track of your finances from month to month. Try and keep your credit card count between two and four.
Although it can be tempting to make payments right after purchasing something, avoid this. It is best just to pay it off each month when the bill is due. This will help to improve your credit rating.
Don’t forget the things you learned in this article, and you are well on your way to having a healthier financial life which includes responsible credit use. Each of these tips are very useful on their own, but when used in conjunction, you will find your credit health improving significantly.
