A credit card can provide you with a lifeline if you ever find yourself in a difficult financial situation. Are you lacking in cash, but need to make a purchase? No problemo! Just use your card. Have you begun building your credit score? Having a credit card helps with that! Read on for many useful tips on how to take advantage of a credit card.
It is a good idea to have two to three credit card accounts open. This will increase your credit score over time, especially if you don’t carry a balance from month to month. That said, if you go all out and open four or more cards, it may look bad to lenders when they evaluate your credit reports.
Read every line of text! Get every last detail from anyone who is offering you a credit card. Know the details about interest, like the rate and dates. Remember to check out any grace periods and finance charges involved, too.
Always report any fraudulent charges that you notice on your credit cards as soon as possible. By doing this, you can help your credit card company catch the thief who is making these unauthorized charges. It’s also the most efficient way to limit the liability you face for the incurred charges. Fraudulent charges can usually be reported by making a phone call or sending an email to the credit card company.
Know what interest rate your card comes with. This is information that you should know before signing up for any new cards. Without a clear understanding of the interest charges, your bills could rise unexpectedly. If you have to pay a lot of interest, then it may be impossible for you to make your monthly payments.
Make a list containing the account numbers of your bank cards and any phone numbers associated with your lenders. Maintain it in a secure place, like a safe, and keep it separated from your cards. The list will prove invaluable if you lose your cards or if they are stolen.
Most analysts state that a credit limit should be no greater than 75% of a monthly salary. If you have limits that go higher than what you make a month, you should try paying these cards off as soon as possible. This is because the interest you are paying will quickly snowball out of control.
If you have not established a credit history and are interested in obtaining a credit card, it may help to obtain a co-signer. A friend that you trust, a parent, sibling or anyone else with established credit can be a co-signer. A co-signer states they are willing to be responsible for the debt if you default. This is a good method for improving and building your credit.
As you can tell, charge cards may be used for many things. From simple actions like paying for items at the checkout line, to using them to boost a person’s credit score, credit cards have a multitude of uses. Use the advice in this article to make sure to use your credit wisely.