A credit card can provide you with a lifeline if you ever find yourself in a difficult financial situation. Do you want to pay for an item, but don’t have any cash? Not a problem! Just use your card. Are you trying to build your credit score? With a credit card, it is easy! Read on to learn other ways credit cards can help you.
Make sure you know what your interest rate will be with a given credit card. Prior to getting a credit card, it is vital that you are aware of the interest rate. You could be charged much more than you originally thought if you are not sure of the rate. You may find it very hard to pay off your debt each month when high interest charges are added to your balance.
Try to avoid any credit card fees–late payment fees, annual fees, and exceeded limit fees. Both of these are pretty large fees and going over your limit can put a blemish on your credit report. Be sure to never pass your credit limit.
If you notice a fraudulent charge on your credit card, report it immediately. If you do this immediately, you will help your credit card company catch the person who stole your credit card. This will help ensure you are not liable for any fraudulent charges against the card. Any charges that you did not make need to be reported to your credit company with a phone call or a high priority email.
You may want to find a co-signer if you don’t have enough credit to get your own card. Anyone with established credit can be a co-signer. They must be willing to sign stating they will pay the balance due on the card if you do not pay it. This is the perfect way to obtain your first card and start to build positive credit.
Interest Rate
Make sure you completely understand credit card terms before you sign up for the card. You may find that the interest rate, payment schedule and fees, are more than what you initially thought they would be. Make sure you fully understand things like the interest rate, the late payment fees and any annual charges the card carries.
Keep up with your credit card purchases, so you do not overspend. It is simple to lose track of spending unless you are keeping a ledger.
Do not use credit cards to purchase things you could not afford. Just because your credit limit is high enough to cover that flat-screen television you eyed at the store, does not mean it is within your budget. You will be paying much more than the initial cost due to interest. Walk out of the store, think about it for a few days, and then arrive at a final decision. If you still want the item, see if the store offers in house financing with better rates.
It is clear that bank cards are used for many different things. From simple things like making a payment to boosting your credit score, there truly is a myriad of uses. Use the advice in this article to make sure to use your credit wisely.