Smart management of credit cards is an integral part of any sound personal finance plan. The key to accomplishing this critical goal is arming yourself with knowledge. Put the tips in the article that follows to work today, and you will be off to a great start in building a strong future.
When choosing the right credit card for your needs, you need to make sure that you pay attention to the interest rates offered. If you see an introductory rate, pay close attention to how long that rate is good for. Interest rates are one of the most important things when getting a new credit card.
Decide what rewards you would like to receive for using your credit card. There are many options for rewards that are offered by credit card companies to entice you to applying for their card. Some offer miles that can be used to purchase airline tickets. Others give you an annual check. Choose a card that offers a reward that is right for you.
If you have credit cards be sure to check your monthly statements thoroughly for errors. Everyone makes errors, and this applies to credit card companies as well. To prevent from paying for something you did not purchase you should save your receipts through the month and then compare them to your statement.
Shop around for a card. Interest rates and terms can vary widely. There are also various types of cards. There are secured cards, cards that double as telephone calling cards, cards that let you either charge and pay later or they take out that charge from your account, and cards used only for charging catalog merchandise. Carefully look at the offers and know what you need.
Take advantage of the fact that you can get a free credit report yearly from three separate agencies. Make sure to get all three of them, so that you can be sure there is nothing going on with your credit cards that you may have missed. There may be something reflected on one that was not on the others.
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 consider those cards that offer you a zero percent interest rate. It may seem very alluring at first, but you may find later that you will have to pay sky high rates down the road. Learn how long that rate is going to last and what the go-to rate will be when it expires.
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.
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.
Watch out for changes to the terms and conditions on your cards. Companies often come out with new terms and conditions, even more frequently than in the past. The most significant changes may be couched in legal terminology. This is why it is important to always pay attention to the fine print. Do this and you will never be surprised by a sudden increase in interest rates and fees.
Find a credit card that rewards you for your spending. Spend money on the card that you would need to spend anyway, such as gas, groceries and even, utility bills. Pay this card off each month as you would those bills, but you get to keep the rewards as a bonus.
A lot of experts agree that a credit card’s maximum limit shouldn’t go above 75% of the amount of money you make every month. If your limit is higher than this, try to pay it off quickly. This is because your interest will just keep growing bigger and bigger.
If you go to make a purchase with your credit card and you are told that there will a surcharge for using that payment method, you can refuse to pay it and demand they accept your purchase. Many credit card companies do not allow merchants to impose fees, so you should check out the policies of your card company.
Using credit cards wisely is an essential aspect of being a smart consumer. It is necessary to educate yourself thoroughly in the ways credit cards work and how they can become useful tools. By using the guidelines in this piece, you can have what it takes to seize control of your own financial fortunes.