Credit cards can be considered both good and bad. However, when used properly, credit cards provide many benefits, such as financial peace of mind, while also offering the chance to earn rewards and perks. If you want to know a little bit more about how to go about having a credit card in the right way, keep on reading!
Speak with the credit card company right after you see a charge on your statement that you did not make. By doing this, you can help your credit card company catch the thief who is making these unauthorized charges. Doing this also helps ensure that you will not have to pay for such charges. Credit card companies have an interest in making it easy to report fraud. Usually, it is as quick as a phone call or short email.
You need to be careful not to overspend, so you should track every purchase you make with your credit card and keep a running total. If you don’t, you may forget how much money you have already spent on your card- write it down!
Never get rid of an account for a credit card prior to going over what it entails. Depending on the situation, closing a credit card account might leave a negative mark on your credit history, something you should avoid at all costs. It is important that you keep your oldest credit cards open, as they account for your credit history.
If you are looking to open a credit card though you do not have any type of established credit, finding someone to co-sign for you can do the trick. Co-signers can be siblings, parents, close friends, or anyone with established credit. They must agree to sign a statement to the effect that if you fail to pay your credit card bill, that they will do so. Many have found this to be a great help in beginning the process of building credit.
Set a budget that you can stick to. Just because you were given a limit by the company issuing your credit card doesn’t mean you need to go that far. A solid budget lets you stay on top of how much you can afford to pay each month to eliminate your balance and avoid interest charges.
To ensure that you don’t over pay for your premium credit card, check whether your card has annual fees attached to it. Some exclusive credit cards require you to pay between $100 and $1,000 per year to keep the card, depending on exactly how exclusive the card is. If you don’t really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
If you want to get your hands on a great credit card, watch your credit score. Credit card companies use these scores to figure out what card you are eligible for. The best cards are offered to people with great scores.
The moment you receive a letter or email regarding your credit card, be sure to read it right then. Card issuers have the ability to adjust fees and interest rates, provided they let you know about it in writing. If you don’t wish to comply, you are allowed to cancel that credit card.
Never give in to the temptation to allow anyone to borrow your credit card. It could be your close friend, but it’s still a bad idea to give it to someone. This can lead to your friendship being ruined. Or it can result in over the limit charges should your friend charge more than you authorized.
Do not get credit cards the minute that you are old enough to get them. Before you apply, you should investigate how the industry works, and what your responsibilities will be when you have a credit card. You should have a good grasp on the responsibilities that will be required of you as an adult before establishing your first line of credit!
When you use a credit card with a strategy and mindfully there can be lots of benefits. From knowing you’re able to pay for emergencies to getting a lot of rewards and perks, bank cards are hopefully a little less scary for you to think about now. You can have these benefits by using what this article has taught you.