Many people get frustrated with credit cards. If you know what you are doing, credit cards can be hassle-free. The article below discusses some of the best ways to use credit responsibly.
Do not depend on your credit card for buying things that you truly cannot afford. Wanting a new TV or game console is not a good reason to put it on a credit card. It costs a lot of interest, and that makes monthly payments pretty much impossible. Take some time to sleep on the the decision and make sure it is really something you want to do. If you still plan to buy it, the store’s in-house financing usually offers lower interest rates.
If you are thinking of ordering a credit card via the mail, ensure you properly protect your personal information by having a mailbox with a lock. Many people that steal credit cards have admitted that they have stolen cards that were delivered and placed in mailboxes that did not have a lock on them.
As a general rule, you should avoid applying for any credit cards that come with any type of free offer. More often than not, anything that you get free with credit card applications will always come with some sort of catch or hidden costs that you are sure to regret later on down the road.
A great tip for saving on today’s high gas prices is to get a reward card from the grocery store where you do business. These days, many stores have gas stations, as well and offer discounted gas prices, if you sign up to use their customer reward cards. Sometimes, you can save up to twenty cents per gallon.
Never apply for more credit cards than you actually need. It’s true that you need a few credit cards to help build your credit, but there is a point at which the amount of credit cards you have is actually detrimental to your credit score. Be mindful to find that happy medium.
Secured credit cards could be the best option when your credit is less than stellar. A balance is required as collateral with these kinds of credit cards. You basically borrow money from yourself, although you have to pay interest on the loan, too. This is not the ideal situation, but it can help some individuals to rebuild their credit score. Just make sure you are working with a reputable company. These companies can offer you unsecured cards in the future, which can make your score higher.
Although it can be tempting to make payments right after purchasing something, avoid this. Waiting to pay the bill in full at the end of the month is a better practice. Doing this will improve both your credit score and payment history.
It is important to always review the charges, and credits that have posted to your credit card account. Whether you choose to verify your account activity online, by reading paper statements, or making certain that all charges and payments are reflected accurately, you can avoid costly errors or unnecessary battles with the card issuer.
Never give your credit card number out, over the phone or online, without knowing and trusting the company you are dealing with. If you receive an offer that is unsolicited and asks for the card number, be even more cautious. There are many scams out there that want your credit card number. Be thorough and protect your card number.
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 using your credit card online, only use it at an address that begins with https:\. The “s” indicates that this is a secure connection that will encrypt your credit card information and keep it safe. If you use your card elsewhere, hackers could get hold of your information and use it for fraudulent activity.
Your oldest credit card is the one that affects your credit report the most. Do not close this account unless the cost of keeping it open is too high. If you are paying an annual fee, ridiculous interest rates, or something similar, then close the account. Otherwise, keep that one open, as it can be the most beneficial to your credit score.
Don’t apply for a bunch of credit cards at one time. Applying for too much credit at once, makes you look desperate to creditors and can, therefore, harm your credit score. Apply for one credit card and use it sparingly, instead of applying for a lot of credit cards at one time.
If you have more than one credit card, leave one at home always. Use it perhaps for online purchases made from home, but do not take it out with you. This way, if you do wind up slipping up and running up the cards in your wallet, you still have an available credit card to use for emergencies.
If you have a credit card with a frequent flier miles program, take the time to learn its rules. Remember to read the policy thoroughly to ensure that you can take advantage of these rewards. Many cards have blackout dates, which makes the rewards program useless. Companies also make these restrictions hard to understand for a reason. The secret is these companies don’t want you getting the rewards. They are really just a hook to get you to apply for their card.
People usually become disappointed and frustrated by credit card companies. However, it’s much easier to pick the right card for you and have a good experience if you do the proper due diligence in advance. Use the advice featured in this article and start getting your credit cards to work for you, rather than against you.