Even if there is no cash in your wallet, you can still spend money that you might not have even earned yet. Credit cards have added power to your wallet, but also peril. Using your cards wisely can mean the difference between pulling your hair out because of the monthly bill or flying away to exotic destinations. Read on for sound strategies that will help you to use your cards wisely.
You should contact your creditor, if you know that you will not be able to pay your monthly bill on time. Many people do not let their credit card company know and end up paying very large fees. Some creditors will work with you, if you let them know the situation ahead of time and they may even end up waiving any late fees.
If you are in the market for a secured credit card, it is very important that you pay close attention to the fees that are associated with the account, as well as, whether they report to the major credit bureaus. If they do not report, then it is no use having that specific card.
Instead of just blindly applying for cards, hoping for approval, and letting credit card companies decide your terms for you, know what you are in for. One way to effectively do this is, to get a free copy of your credit report. This will help you know a ballpark idea of what cards you might be approved for, and what your terms might look like.
When looking to open a credit card, start by eliminating any with annual fees or high interest rates. There are many options that don't have annual fees, so it is silly to choose a card that does.
Make sure the password and pin number of your credit card is difficult for anyone to guess. Using your birth date, middle name or your child's name can be problematic, as it is not difficult for others to find out that information.
Every time you decide to apply for a new credit card, your credit report is checked and an "inquiry" is made. This stays on your credit report for up to two years and too many inquiries, brings your credit score down. Therefore, before you start wildly applying for different cards, research the market first and choose a few select options.
Never make use of public computers for making purchases with a card. Your information may be stored and retrieved from computers in coffee shops, the library, etc. To avoid this possibility, only make online purchases on private computers. Make sure that all purchases are made on your computer, always.
Don't be scared to negotiate your interest rate with a credit company. If you have a good credit history with them, they may give you a better rate. A single phone call can get you a better interest rate and help you to save a lot of money.
Only spend what you could afford to pay for in cash. The benefit of using a card rather than cash, or a debit card, is that it establishes credit, which you will need to get a loan in the future. By only spending what you can afford to pay for in cash, you will never get into debt that you can't get out of.
Never give your card number out over the phone. This is used by scammers all the time. Only give your card number to businesses you can trust. Do not give them to people who call you. It doesn't matter who they say they are if you don't know the person.
You may want to consider using layaway, instead of credit cards during the holiday season. Credit cards traditionally, will cause you to incur a higher expense than layaway fees. This way, you will only spend what you can actually afford during the holidays. Making interest payments over a year on your holiday shopping will end up costing you far more than you may realize.
Every year you should make sure to ask for a free credit report from each of the credit bureaus. Compare the information on the report with your credit card statements and be certain they match.
If you find that you cannot pay your credit card balance in full, slow down on how often you use it. Though it's a problem to get on the wrong track when it comes to your credit cards, the problem will only become worse if you allow it to. Try to stop using your cards for awhile, or at least slow down, so you can avoid owing thousands and falling into financial hardship.
Credit cards let you spend someone else's money, on the condition that you are paying them back starting in a few weeks. The interest rates can ruin your future, or the reward points can brighten your coming months. To fall on the side of that divide that you want, apply what you have learned in this article.
Orignal From: Credit Cards Are Simple To Understand With These Informative Tips
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