Consumer knowledge is key to the proper use of credit. This article will help you know more about credit cards and dodging the troubles associated with them. It is much easier to get a credit card than it is to use it wisely, so many people end up in financial trouble.
You should try to have at least two open cards or possibly three open credit accounts. This helps improve your credit score, particularly if you can pay off the cards each month in full. Having more than three open helps lenders look at you in a bad light when they see your credit report.
Always make sure there is not a yearly fee attached to any credit card that offers rewards or perks. The exclusive credit cards, like the platinum or black cards, are known to charge it's customers an annual fee from 0 to ,000 a year. If you do not need a card that is exclusive, don't get one. This way you will avoid the fees.
Understand the credit card agreement before you use that card. As a general rule of thumb, usage of a credit card represents acceptance of all terms in the credit card's agreement policy. Although some of this agreement may be in fine print, it is very important to thoroughly read all sections.
Ensure you are always paying your credit card bill on time. All credit balances have a specific due date; if you don't pay attention to it, you will likely be charged high fees. Card companies will give you a higher interest rate as well, increasing the cost of purchases made in the future.
People searching for new credit cards should try and find one without an annual fee and with low interest rates. Choosing a card that has an annual fee attached is a waste of your money when there are numerous credit cards available without one.
Do not make credit card purchases on public computers. Public computers at libraries, cafes and other places, may store your private information, making it easy for a technically savvy thief to gain access. It is very dangerous using these computers and entering any type of personal information. Only buy things online if you are on your own computer.
Avoid the urge to lend a credit card to someone. Even though a good friend might have a need, it is never a good decision to lend it to anyone. Doing so can result in over the limit fees if your friend charges more than you allowed them to.
Check out the integrity of your seller before using your credit card for online purchases. You do not want to deal with a merchant that does not provide a physical address on his or her site. Dial up the phone numbers shown on the merchant's site to verify that they are in operation.
Never lie about how much money you make just so you can apply for a card with an extremely high limit. The limit given to you by your credit card company may be too high if they don't verify your income - this can lead to overspending.
Only keep cards on you if you use them regularly. You may have quite a few cards, but consider what cards you use the most. A credit card for everyday charges and a card that you use for gas should be more than enough. Take just those two with you, and leave the others safely at home.
If you can, stay away from cards that have annual fees. Usually, no annual fees cards are offered to those with better credit scores. Fees can quickly eliminate the perks associated with any offers that accompany the card. Make the calculations. Credit card companies don't talk about the fees, but they do include them in the small print. Use a magnifying glass if the print is too small. Check if the fees negate the benefits. Normally, they don't.
To make sure you don't use them too much, place credit cards in back of debit cards inside wallets. If you do this, you will use your debit card even when you aren't paying attention, rather than your credit card.
Regularly use credit cards that you want to keep hold of. Many companies close accounts that are inactive for too long. There is only one way to ensure that your account remains opened: use the credit card periodically. Remember to pay the bill promptly and in full when it comes so that you do not pile up the debt.
Pay your credit card balance in full each billing cycle. If your credit card is not one with 0% interest, there is a finance charge added each month to your unpaid balance if your bill is not paid off in full. By only paying the minimum required, even little bills will take a while to get rid of due to these extra charges.
If you lose or don't know where your credit card went, then you need to contact the credit card company. They will immediately terminate the card so it can't be used by someone else. Then, the company can issue a brand new card.
Make timely payments on a monthly basis. Even if you only miss your payment one time, your credit company could raise your card's interest rate. In the same way, missed or late payments are reflected in your credit report and it lowers your credit score. Consider signing up for auto-payments online to take late payments out of the equation.
Keep at least one credit card account open so that your credit history will continue. The one that you leave open should have the best record of payment and the longest history. This shows that you are able to manage an account for an extended amount of time.
As previously discussed, it is extremely easy to get in over your head when you utilize credit cards. Having a couple of extra cards and making a few extra purchases can lead to real issues quickly. This article may be able to help you stay away from credit issues and stay financially healthy.
Orignal From: Looking For Credit Card Answers? Well You've Found Them Here!
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