If you have never owned a credit card before, you may not be aware of the advantages it contains. A credit card can be used as a alternative form of payment in many locations, even online. In addition to this, it can be used to build a person’s credit score. If these advantages appeal to you, then continue reading for more information on credit cards and how to use them.
Check your credit report regularly. By law, you are allowed to check your credit score once a year from the three major credit agencies. This may be often enough, if you use credit sparingly and always pay on time. You may want to spend the extra money, and check more often if you carry a lot of credit card debt.
When you are looking over all of the rate and fee information for your credit card make sure that you know which ones are permanent and which ones may be part of a promotion. You do not want to make the mistake of going for a card with very low rates and then they balloon shortly after.
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.
If you need to use credit cards, it is best to use one credit card with a larger balance, than 2, or 3 with lower balances. The more credit cards you own, the lower your credit score will be. Use one card, and pay the payments on time to keep your credit score healthy!
Carefully read through all the conditions and terms of your card agreement before using the card. When you first use a card, you are basically accepting the terms the company offers. The print on the agreement may be small, but it is important to read it carefully.
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
Do not let anyone borrow your credit card. It could be your close friend, but it’s still a bad idea to give it to someone. They may make too many charges or go over whatever limit you set for them.
Be careful when purchasing things online. When applying or doing anything with credit cards online, always verify that the website you are on is secure. When a website is secure, your card’s information is as well. Do not pay any attention to emails that want your credit card details.
Know your credit history before applying for new cards. The new card’s credit limit and interest rate will depend on how bad or good your credit history is. Avoid any surprises by getting a report on your credit from each of the three credit agencies once a year. You can get it free once per year from AnnualCreditReport.com, a government-sponsored agency.
Make a list containing the account numbers of your credit cards and any phone numbers associated with your lenders. Leave it in a safe area and keep it separated from credit cards. If you were to get robbed or lose your cards, this list can come in handy.
It is wise to refrain from giving a credit card to a child. It is best to let children wait to get credit cards until they reach the age of 18, or when they can get their own. Instead, consider opening them a checking account and giving them an allowance. This will help them learn to manage a small amount of money so that they will be ready to manage a credit card when the time comes.
Keep multiple credit card accounts open. Having multiple credit cards will keep your credit score healthy, as long as you pay on them consistently. The key to keeping a healthy credit score with multiple credit cards is to use them responsibly. If you do not, you could end up hurting your credit score.
A useful tip for ensuring smart usage of credit cards is to only use them for purchases in amounts that are sure to be available in your bank account by the time the monthly statement arrives. By restricting purchases to amounts that can be easily repaid in full, you will build a solid credit record and maintain a strong relationship with your card issuer.
Be sure your kids take responsibility for their own credit cards. While it can be challenging to deny your children access to a credit card because of their immaturity, it is one of the best things you can do to help your children avoid debt in the future.
If you are looking to get a credit card, consider researching the larger credit companies because, more than likely, they will offer you the best terms for the card. The reason here is that the larger companies usually offer more flexible rates and better benefits. In selecting a credit card, you should look to the major providers. This is because your credit rating is at stake.
Have a card that is set aside specifically for buying things online in case your information becomes compromised. Using many different cards when purchasing online can put too much information out there.
When you use a credit card to make a reservation, (e.g. at a hotel, or for plane tickets) you should always complete the transaction using the same card. Paying in cash, or using a different card opens you up to being charged twice for the same service. Even if you are not double-charged, removing the reservation charge from your card can take a long time.
Now that you are aware of how beneficial a credit card can be, it’s time to start looking at some credit cards. Take the information from this article and put it to good use, so that you can apply for a credit card and start making purchases.
