Credit cards can be a great help in your life for helping your manage your finances. Not only are they good for building good credit, but they also can give you a backup plan, in case of times where you incur unintended financial burdens. Check out this article for great information about credit cards.
If you have multiple cards that have a balance on them, you should avoid getting new cards. Even if you are paying everything back on time, there is no reason for you to take the chance of getting another card and making your financial situation any more strained than it already is.
Make the minimum monthly payment in the very least on all of your credit cards. Not making the minimum payment on time can cost you a great deal of money over time. It can also cause harm to your credit rating. To protect both your expenses, and your credit rating be sure to make minimum payments on time each month.
Make sure you use any credit card you obtain wisely. Don’t buy anything that you know you can’t afford. When you use the card, you have to know when and how you are going to pay the debt down before you swipe, so that you do not carry a balance. If you keep a balance on your account, it is easy to be tempted into spending more and this will make it more difficult to repay.
Keep track of your credit score if you would like to get a good credit card. Credit scores are always used by card issuers to decide which cards an individual consumer may receive. Low interest credit cards with great point options and incentives are offered only to those people with high credit scores.
Be sure to get assistance, if you’re in over your head with your credit cards. Try contacting Consumer Credit Counseling Service. This nonprofit organization offers many low, or no cost services, to those who need a repayment plan in place to take care of their debt, and improve their overall credit.
Never use a public computer for online purchases. Public computers at libraries, cafes and other places, may store your private information, making it easy for a technically savvy thief to gain access. When you leave your details behind on such computers you expose yourself to great unnecessary risks. Purchase items from your computer only.
No matter how tempting, never loan anyone your credit card. Even if a close friend really needs some help, do not loan them your card. If your friend charges more than you had expected, you may be stuck with over-limit charges as well as a huge credit card bill.
If you are going to make purchases over the Internet you need to make all of them with the same credit card. You do not want to use all of your cards to make online purchases because that will increase the chances of you becoming a victim of credit card fraud.
Each month when you receive your statement, take the time to look over it. Check all the information for accuracy. A merchant may have accidentally charged a different amount or may have submitted a double payment. You may also find that someone accessed your card and went on a shopping spree. Immediately report any inaccuracies to the credit card company.
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.
Use a credit card that offers rewards. Not every credit card company offers rewards, so you need to choose wisely. Reward points can be earned on every purchase, or for making purchases in certain categories. There are many different rewards including air miles, cash back or merchandise. Be wary though because some of these cards charge a fee.
Limit the number of active credit cards you have, in order to avoid getting into debt. It’s much easier to manage your finances with fewer cards and to limit excessive spending. Ignore all the offers you might be receiving, tempting you into getting more cards and letting your spending get too far out of control.
Once you close one of your credit card accounts, make sure you destroy the physical card. Not doing so might mean that the card ends up in the wrong hands, putting you at risk of fraud. This is a good way to destroy your credit and make it impossible to get loans in the future.
As stated earlier, credit cards can be a great thing to have, not only to help with your long term needs, but also with things that may come up in the near future. Be sure to follow the information provided in this article for guidance on managing your credit cards.