People today are bombarded with warnings about the dangers of bank cards, overspending and borrowing at high interest rates. If used the right way, credit cards can be very beneficial. Read on to learn how you can use bank cards in a positive manner.
Credit Score
In terms of a retail store’s credit options, you should never get a card with them unless you’re a loyal, regular customer. 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.
Do not bother with retail credit cards unless you have a serious intent to shop at a given store on a regular basis. Even applying for a card with the store will reflect badly on your credit score if you’re not accepted, and there’s no sense in applying if you’re not a regular shopper. Excessive inquiries from those retailers on your report can drop your credit score.
To make sure you aren’t paying too much for a premium card, ensure the credit card does not require you to pay an annual fee. Premium charge cards can have annual fees anywhere from the $100’s to the $1000’s. If you do not need the perks associated with these cards, don’t pay the annual fee.
Always make any credit card payments on time. If you do not pay your credit card by the due date, you will incur hefty charges. You also run the risk of being charged a higher interest rate on any purchases, which reduces your overall buying power.
If you have financial problems in your life, tell your card company. If you are unsure whether you will make a payment, your company might work to create a payment plan that is adjusted for you. They may be less likely to report a payment that is late to the major credit score agencies.
Credit Card
Don’t run out and get yourself multiple credit cards as soon as you come of age. Though it is a common occurrence, it is best to spend time learning about the inner workings of the credit industry before you wade in. Get a little bit of adult experience under your belt before making the leap.
A cosigner can help you obtain a credit card if you have yet to establish credit. This can be anyone who trusts you, like a relative or close friend. They are required to state their willingness to assume responsibility for outstanding balances if you fail to pay. This method is a smart way to help build your credit with a first credit card.
You should sign credit cards as soon as you receive them in the mail. Lots of people do not do this, and therefore, their cards end up getting stolen without the cashiers being aware of this. Many cashiers will check to make sure there are matching signatures before finalizing the sale.
When you make online purchases with your credit card, always print out a copy of the sales receipt. Keep your copy at least until you receive your monthly statement, to be sure that you were charged the authorized amount. If they did not, contact the company and file a dispute immediately. Having the receipt on hand will make any disputes much easier to resolve.
Many times, credit cards are associated with loyalty programs. If you buy on credit often, you should look for a loyalty program which will be useful to you. If you use it smartly, it can act like a second income stream.
Always monitor adjustments to card terms and conditions. It’s not uncommon in recent times for a card company to change their terms frequently. Oftentimes, the things that will affect you the most are written in legal language that can be difficult to translate. Make certain you review all changes so that you know how they may impact your finances.
Never make use of public computers for making purchases with a card. The credit card information can be stored on the computer and accessed by subsequent users. Inputting your credit card information on these computers is asking for trouble. Only make a purchase from your personal computer.
Retain a sales receipt when making online purchases with your card. Keep that receipt until the credit card bill comes in the mail and verify that all figures match up. If they didn’t, call the company and immediately file a dispute. This is necessary to ensure you are not overcharged for your purchases.
Credit Card Company
Use caution when using your credit cards online. Before entering card information online, ensure you’re using a secure site. Secure websites will keep the credit card information you enter safe. Additionally, disregard any email requesting credit card info, as these are most often ploys to get at your valuable personal data.
To keep more money in your wallet, don’t be afraid to ask your credit card company for a better interest rate. If you have a history with the credit card company and have been making payments on a timely basis, you might be able to ask for a better rate. A quick call might be all that is necessary to lower your rate and facilitate real savings.
A great tip for any card holder is to get an annual credit report to be sure everything is right. Check your credit report against your own account statements to ensure that they align.
Keep tabs on your credit score periodically. Most companies consider a credit, or FICO, score of 700 to be the cutoff for good credit. Put your credit to work to maintain that score or to help you reach it. By having a score of seven hundred or higher, you will get the best offers and you will have the lowest rates at the same time.
Many people mistakenly decide not to get credit cards so it looks like they have no debt. Bank cards build credit, so you really should have at least one. Charge things on it, but repay the full balance monthly. If you have no credit at all, lenders are not able to ascertain if you are good at debt management or not.
Keep credit card accounts open for as long as possible when you open one. Don’t switch to another credit card account unless you really have to. The longer your positive credit history is with a creditor, the better your credit score. Part of building credit is keeping accounts open if possible.
If someone calls requesting your card number, don’t give it to them. This is a common ploy for scammers. Only give your number out to trusted businesses and your credit card company when you call them. Never give your number to random people who call your home. It does not matter who they say they are, you don’t know that they are being honest.
Negotiate your interest rate. Contact the company that issues your credit card, you may be able to get them to lower your rate. If your payments have always been timely and you have been a solid customer, you stand a good chance of being granted a reduced APR.
Make it a point to not take all your charge cards with you everywhere you go each day. You might have five cards or more, but consider which of those cards you use most frequently. Such cards may be a general purpose card and a gasoline card. These cards are the ones that should be in your wallet. The rest should be at your home in a place that is safe and secure.
We have all experienced it: Another annoying credit card solicitation comes in the mail, asking you to get one of the company’s cards. You may be looking for a new one, but you might not be. Always shred any credit card offer that comes through the mail. Avoid tossing it in the garbage intact because the application might contain some confidential information.
Make sure a note that indicates your purchases is kept in an area in your home where it can be seen. It’s important to be aware of what your balance is. Too often, we let credit card spending get out of control by not self-monitoring and before long, we find ourselves in hot financial water!
Bank cards can be helpful and beneficial when used the right way. Your life can be much better from having a credit cards, giving you flexibility, rewards, and emergency spending money. Use all of the information you have learned here to be successful.
Check with your credit card company about their willingness to reduce your interest rates. Some issuers will reduce interest rates charged to customers if their credit relationship is in good standing. This can really save you a lot of money and it never hurts to ask.