Since bank cards burst onto the scene, people have been going broke trying to keep up with the payments. Along with other things, a credit card can be hard to manage if you aren’t sure how to use one. Read the advice in this article to learn more about the use of charge cards.
If you receive a credit card offer in the mail, make sure you read all the information carefully before accepting. If you see ‘pre-approved’ or someone offers a card ‘on the spot’, be sure to know what you are getting into prior to making a decision. Know what the real interest rate is, if it goes up after the first year and how much time they allow for payment of it. Be sure to also find out about grace periods and fees.
Always know the rate of interest on all your credit cards. You must understand the interest rate before agreeing to accept a credit card. If you are unaware, you may end up paying far more than the initial price. If you end up paying more, it is possible that you will be unable to repay the balance every month.
A credit card should not be used for purchases you cannot afford. Just because you want a new flat-screen TV, doesn’t mean a credit card is the best way to buy it. If you cannot pay the charges off at the end of the month, you will pay a lot of interest and may run the risk of not being able to afford the monthly payments. Make decisions only after thinking them over for a couple of days. 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.
Keep your receipt when making purchases online. Don’t throw away the receipt until after you get your statement. Check the statement against the bill to ensure you weren’t overcharged. If they didn’t, call the company and immediately file a dispute. This smart technique will serve you well and ensure that you never get overcharged for your purchases.
Your interest rates are not set in stone, and you can do something about getting them lowered. There is a great deal of competition amongst the credit card companies, and each has different interest rates. If you are unhappy with your current interest rate, call the bank or company and ask for a lower one.
When you have a credit card account, the best practice is to keep it open for the longest possible amount of time. Unless you have to, don’t change accounts. The amount of time that your account has been open will have an impact on your credit score. An important part of keeping a good credit history is keeping your credit accounts open, even if they are paid off.
Many times charges for restaurants take longer to arrive on your credit card statement. This may result in you spending too much money when you see an artificially low balance.
After your account is closed, cut up your credit card. If you choose to put it in a drawer, the card could find itself in another person’s hands, and he or she could use your information to open up your account and charge lots of debt that is in your name.
It is often easy to use a credit card for each purchase, but this is an irresponsible practice. Some vendors require a minimum purchase for charge cards and you may buy extra things to bring the charge up. Therefore, use your credit cards for purchases over $10.
Remember to read everything associated to it before signing for secured bank cards. Although you may only have to make a small deposit, there may be tons of hidden fees that will reduce your credit limit.
Report a lost or stolen card to the company that maintains your credit card immediately. If a thief uses your card prior to the theft being reported, you might end up paying for whatever they purchased. When you report your credit card as missing, your card company can’t hold you accountable for any charges you did not make.
Don’t pay off one credit card with another. Sometimes when people are desperate to make a payment, they will advance cash from one card, to pay off another in an emergency. Be warned that this trick only results in fees and interest that will compound each month.
If you are going to be using your credit card to purchase something that is really out of the norm, it’s a smart idea to contact the issuer first. If you want to make a large purchase, or have an international trip planned, let your card company know what to expect. This will prevent any concerns by the company over identity theft and can keep your card from becoming locked.
As discussed previously, frustration and confusion can often come with attempting to understand your credit card accounts. By following good advice, it can become much easier to use credit. Use the tips in this guide to aid you in dealing with your credit cards better.