No one wants to lose out on the big things in life like buying a car or a house, because they misused their credit cards earlier on in life. This article has lots of ways to avoid big mistakes regarding credit cards, and also ways you can start to get out of a jam, if you’ve already created one.
Do not use your credit cards to make emergency purchases. Many people believe that this is the best use of credit cards, but the best use is actually for things that you purchase on a regular basis, like groceries. The key is, to only charge things that you will be able to pay back in a timely manner.
If possible, pay your credit cards in full, every month. Use them for normal expenses, such as, gasoline and groceries and then, proceed to pay off the balance at the end of the month. This will build your credit and help you to gain rewards from your card, without accruing interest or sending you into debt.
If you’re able to, always pay your credit card debt off in full every month. Ideally, credit cards should only be used as a convenience and paid in full before the new billing cycle begins. Using them will increase your credit rating and paying them off right away will help you avoid any finance fees.
An important aspect of smart credit card usage is to pay the entire outstanding balance, each and every month, whenever possible. By keeping your usage percentage low, you will help keep your overall credit score high, as well as, keep a substantial amount of available credit open for use in case of emergencies.
If you are about to start a search for a new credit card, be sure to check your credit record first. Make sure your credit report accurately reflects your debts and obligations. Contact the credit reporting agency to remove old or inaccurate information. A little time spent upfront will net you the best credit limit and lowest interest rates that you may be eligible for.
Any time you receive emails or physical mail regarding your credit card, open them immediately. Credit card companies can make changes to your annual membership fees and things like your interest rates but they have to send you a letter explaining what they have changed. You can cancel your account if you don’t agree with this.
When looking to open a credit card, start by eliminating any with annual fees or high interest rates. Since so many cards do not charge an annual fee, it is a waste of your money to pay annual fees.
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
Whenever you sign a credit card slip in any store, fill in all the spaces. If you do not want to leave a tip make sure to write a zero or draw a line to indicate no tip is included and nobody can add an amount in. Additionally, it’s a good idea to verify the information from all receipts with your monthly statement.
Never lend your credit card to a family member or friend. Even if you’re talking about a relative, you can never trust someone enough to deal with the potential consequences. Doing so can result in over the limit fees if your friend charges more than you allowed them to.
Many companies advertise that you can transfer balances over to them and carry a lower interest rate. This sounds appealing, but you need to carefully consider your options. Think about it. If a company consolidates a higher amount of money onto one card and then the interest rate spikes, you are going to have a hard time making that payment. Know all the terms and conditions, and be careful.
You should try and limit the number of credit cards that are in your name. Too many credit cards is not good for your credit score. Having several different cards can also make it more difficult to keep track of your finances from month to month. Try and keep your credit card count between two and four.
To avoid interest charges, don’t treat your credit card as you would an ATM card. Don’t get in the habit of charging every single item that you buy. Doing so, will only pile on charges to your bill, you may get an unpleasant surprise, when you receive that monthly credit card bill.
Don’t let your past issues with credit cards slow you down in the future. There are many things you can do right now, to start digging yourself out of that hole. If you’ve managed to stay out of it up to this point, then the advice you read here can keep you on the right track.