Do you use a credit card? Do you know how much credit you have total? Do you know how much additional credit you have available to you? If you are unable to answer these second two questions, then you are probably not using credit responsibly, and it is time to learn more!
Make sure that you pore over your credit card statement each and every month, to make sure that every single charge on your bill has been authorized by you. Many people fail to do this and it is much harder to fight fraudulent charges after a lot of time has passed.
Plan a budget you will have problem following. You do not need to spend the entire limit on your card, even though it’s available. Calculate how much money you have to pay on your credit card bill each month and then don’t spend more than that amount on your credit card. By doing this, you can avoid paying any interest to your credit card provider.
It should be obvious, but many people fail to follow the simple tip of paying your credit card bill on time each month. Late payments can reflect poorly on your credit report, you may also be charged hefty penalty fees, if you don’t pay your bill on time.
Keep tabs on your credit score periodically. Many credit card companies look at a score of 700 to be good. Wisely use your credit in order to maintain this level or to reach this level if you aren’t this high yet. Once you have a credit score of around 700 or more, you’ll be offered excellent credit offers with very low rates.
An important tip when it comes to smart credit card usage is, resisting the urge to use cards for cash advances. By refusing to access credit card funds at ATMs, you will be able to avoid the frequently exorbitant interest rates, and fees credit card companies often charge for such services.
It goes without saying, perhaps, but always pay your credit cards on time. To be able to follow this simple rule, do not charge more than you afford to pay in cash. Credit card debt can quickly balloon out of control, especially, if the card carries a high interest rate. Otherwise, you will find that you cannot follow the simple rule of paying on time.
Check with your credit card company, to learn if you can set up, and automatic payment each month. Many companies will allow you to automatically pay the full amount, minimum payment, or set amount out of your checking account each month. This will ensure that your payment is always made on time.
Keep a running total of the monthly expenditures you charge to your credit cards. These types up purchases are usually unnecessary and increase your balance and interest fees needlessly. If you do not pay close attention to the amount you have on a credit card, you could discover that you don’t have the amount of money you need in order to pay off your monthly bill.
It is very important that you save your credit card receipts. You need to compare them with your monthly statement. Companies do make mistakes and sometimes, you get charged for things you did not purchase. So make sure you promptly report any discrepancies to the company that issued the card.
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.
When deciding which credit card is best for you, be sure to take its reward program into consideration. For example, some companies may offer travel assistance or roadside protection, which could come in handy at some point. Inquire about the details of the reward program prior to committing to a card.
Shop around for different credit cards. Interest rates and other terms tend to vary greatly. There are also various types of cards, such as cards that are secured which require a deposit to cover charges that are made. Make sure you know what kind of card you are signing up for, and what you’re being offered.
If your credit cards have an interest rate that is higher than you feel comfortable with, talk to the company to see if it can be reduced. Often, they will agree. Each time you do not pay off your balance, you will save money.
Frequently monitor your credit score and get reports to know how you are maintaining your accounts. Taking this step also enables you to make sure that others are managing your accounts well. Be on the lookout for reporting errors. If there’s one, contact your credit card company and dispute the mistake to the right authorities.
If you discover your card is missing, immediately alert your credit company. If you don’t report it, you may have to honor the charges. Once it’s reported missing, no one can hold you liable for those charges.
When you are traveling, particularly abroad, keep a couple of credit cards on hand. It is best to have at least two cards, from different institutions, so you have choices. If you find that you are having difficulties using one card, and the only thing you have is another from the same lender, you might run into the same problems with the second card. If you have cards from several banks, you can still access credit if one has a problem.
Now, you should be better prepared to use a consumer credit card in the proper way. When used correctly, credit cards can be a great way to simplify your life, however, when you are irresponsible with credit cards, then they can quickly get out of hand and make your life very complicated.
