Credit cards can be a convenient way to make purchases without carrying cash or incurring fees of debit cards. The following article will give you advice on how to use your credit cards without getting into trouble.
You should contact your creditor, if you know that you will not be able to pay your monthly bill on time. Many people do not let their credit card company know and end up paying very large fees. Some creditors will work with you, if you let them know the situation ahead of time and they may even end up waiving any late fees.
When getting a premium card you should verify whether or not there are annual fees attached to it, since they can be pretty pricey. 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 a credit card with high interest you should consider transferring the balance. Many credit card companies offer special rates, including 0% interest, when you transfer your balance to their credit card. Do the math to figure out if this is beneficial to you before you make the decision to transfer balances.
Never give out your credit card number to anyone, unless you are the person that has initiated the transaction. If someone calls you on the phone asking for your card number in order to pay for anything, you should ask them to give you a way to contact them, so that you can arrange the payment at a better time.
Only take cash advances from your credit card when you absolutely have to. The finance charges for cash advances are very high, and very difficult to pay off. Only use them for situations in which you have no other option. But you must truly feel that you will be able to make considerable payments on your credit card, soon after.
If you have a credit card, add it into your monthly budget. Budget a specific amount that you are financially able to put on the card each month, and then pay that amount off at the end of the month. Try not to let your credit card balance ever get above that amount. This is a great way to always pay your credit cards off in full, allowing you to build a great credit score.
Don’t buy things that you can’t pay for on a credit card. If you would like a new television, save up some cash for it rather than assume your credit card is the best option. You will end up being charged lots of interest and you may be unable to keep up with the monthly repayments on your credit card. Go home and take a day or two to think it over before making your choice. If you are still set on buying it, you are probably eligible for the store’s financing program that will save you money in interest over the credit card company.
Fully read the disclosure statement before you accept a credit card. This statement explains the terms of use for that card, including any associated interest rates and late fees. By reading the statement, you can understand the card you are choosing, in order to make effective decisions when it comes to paying it off.
Online purchases should only be with trusted vendors whom you have checked out before divulging information. Call the company to be sure they are still in business, and never buy from a store that has no street address listed.
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.
If you feel your interest rate is excessive on your credit card, ask the issuer to lower it. If, after speaking with a retention team member, you are still unable to get a reduction, start looking elsewhere for a better rate. After you locate a company that offers a rate you like, open an account with them and transfer your balance over to it.
A secured credit card may be an option you want to look into if your credit score is in trouble. These cards require balances as collateral. Basically, you borrow your own money, paying interest to be able to do so. It isn’t the best, but it can help to repair bad credit. When seeking secured cards, limit yourself to established issuers. They may offer you an unsecured card later, which will help your score even more.
Look into the rewards that credit card companies offer. Find one that is going to pay you for making purchases on their card. If you are trying to maximize the rewards, charge everything you can on the card, but be sure to put enough cash back to pay the card off each month, in order to avoid losing your rewards to interest fees.
The advice from this article has, hopefully, given you the information you need. 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.
