Bank cards are used around the world by people hoping to achieve the life they want to live. Having a credit card dramatically increases a person’s financial freedom. With that said, never forget that you must choose your charge cards wisely and use them intelligently. The information provided here can help you achieve that goal.
Whenever you spot anything fraudulent on your monthly credit card statement, call the issuing company right away. This allows the credit card issuer the best opportunity to find the offender. This will also allow you to be sure that you aren’t responsible for the charges they made. You can usually report fraudulent activity through a quick telephone call to your credit company.
Do not use credit cards to purchase items that are much more than you can possibly afford. Though you may want to use a card to make a purchase that you are certain you can repay down the road, it is not smart to buy something that you clearly cannot easily afford.
Many card issuers offer signing bonuses when you apply for a card. Make sure that you understand everything that is written in fine print since many credit card companies have specific terms you need to adhere to in order to get bonuses. The most common condition for the bonus is having to spend certain amounts during a set amount of months; before you get tempted with a bonus offer, make sure you meet the necessary qualifications first.
Be sure to study your credit card terms closely prior to making your first purchase. Most companies consider you to have agreed to the card agreement when you first use the card. No matter how small the print is on your agreement, you need to read and understand it.
Do not hesitate to request a lower interest rate in order to lighten your debt load. If you maintain a good history with your company and have always made payments on time, you should be able to come up with a better rate. A quick call might be all that is necessary to lower your rate and facilitate real savings.
Just as you want to avoid paying late fees, you want to avoid that over the limit fee as well. They are both quite high and can have bad effects on your report. Pay attention and make sure you stay under your credit limit.
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 you have a limit higher than a month’s salary, you should work on paying it off immediately. If you do not or cannot, the amount of interest you pay quickly skyrockets to excessively high amounts.
Avoid closing accounts. Closing an account can hurt your credit score instead of helping. When you close accounts, you reduce how much credit you have. This then closes the gap between the credit you can borrow and how much you currently owe.
If you have more than one credit card, try to pick one to pay off every month. If you have revolving balances on other accounts, keeping one card active that is repaid monthly will have a positive impact on your credit score.
You may want to find a co-signer if you don’t have enough credit to get your own card. A co-signer can be a parent, sibling, trusted friend or anyone else who has already established credit. A co-signer states they are willing to be responsible for the debt if you default. This is one method that is effective in helping individuals to obtain their first card so that they can start building credit.
Credit cards offer many advantages, they increase spending options, and open up a whole new lifestyle to consumers. Along with the clear advantages bank cards offer, there are dangers to avoid. Used carelessly, credit cards can cause financial ruin. This article contains valuable advice to help consumers make wise credit card decisions to enhance their lives and avoid credit pitfalls.