Some people say that dealing with credit cards can be a real challenge. However, if you have the right guidance, credit card issues will be much less of a burden on your life. This article provides several tips to help anyone understand more about the credit card industry.
When it comes to credit cards, always try to spend no more than you can pay off at the end of each billing cycle. By doing this, you can help to avoid high interest rates, late fees and other such financial pitfalls. This is also a great way to keep your credit score high.
Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. When stores submit an inquiry into your credit history for a card, this gets reported on your credit report whether or not you ultimately get the card. If you have too many credit inquiries, your credit score may take a hit.
Don’t fall for the introductory rates on credit cards when opening a new one. Be sure to ask the creditor what the rate will go up to after, the introductory rate expires. Sometimes, the APR can go up to 20-30% on some cards, an interest rate you definitely don’t want to be paying once your introductory rate goes away.
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 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!
Only take cash advances from your credit card when you absolutely have to. The finance charges for cash advances are very high, and very difficult to pay off. Only use them for situations in which you have no other option. But you must truly feel that you will be able to make considerable payments on your credit card, soon after.
Consider the different loyalty programs offered by different companies. If you use credit cards on a regular basis, it is wise to find one with a loyalty or rewards program that you find personally useful. This can really help you to afford the things you want and need, if you use the card and rewards with some level of care.
Pay off as much of your balance as you can each month. The more you owe the credit card company each month, the more you will pay in interest. If you pay even a small amount in addition to the minimum payment each month, you can save yourself a great deal of interest each year.
Do not use credit cards to make purchases that are not affordable. You might want a flat-screen television, but that doesn’t mean that you should use your credit card to buy it. You will end up paying a lot of money in interest charges, and the amount you need to pay every month might be too much for you. Leave the store and return the next day if you still want to buy the product. If you still want the item, see if the store offers in house financing with better rates.
To spend less money, try looking for a lower interest rate. If you have a significant history with a credit card company, and have paid your payments in a timely manner, they may be willing to offer you a lower rate. A single phone call can get you a better interest rate and help you to save a lot of money.
Never write your pin number or your password down under any circumstances. You must remember the number so that others can’t access your account. Writing your pin number down increases the chance that someone else uses it.
Make sure you save your statements. Before you file them away, pay close attention to what is on them as well. If you see a charge that shouldn’t be on there, dispute the charge. All credit card companies have dispute procedures in place to assist you with fraudulent charges that may occur.
As was discussed earlier in the article, some people have a hard time understanding credit cards at first glance. However, with more information, they can make much more informed and suitable choices relating to their credit card decisions. Follow this article’s advice and you will ensure a more successful approach to managing your own credit card or cards.
