In many bad financial situations, a credit card can act as a lifesaver. Are you lacking in cash, but need to make a purchase? That’s easy to do! A credit card can alleviate this kind of problem. Do you need to improve your credit score? It’s very easy with a credit card! Read on to learn other ways bank cards can help you.
Whenever you spot anything fraudulent on your monthly credit card statement, call the issuing company right away. The sooner you report it the sooner you give credit card companies and the authorities to catch the thief. It also ensures you are not responsible for any charges made on the lost or stolen card. All it takes is a quick email or phone call to notify the issuer of your credit card and keep yourself protected.
It is good to keep in mind that credit card companies are not your friends when you look at minimum monthly payments. They set minimum payments in order to maximize the amount of interest you pay them. Always pay as much as possible in excess of the minimum payment. Avoid paying interest fees for long periods of time.
Tell the credit card company if you are facing a difficult financial situation. If there is a possibility that you may have to miss one payment, by contacting the company that issued your credit card, you might be able to work out some sort of adjusted payment plan. This can help make them not turn in a report to a reporting agency about a late payment.
If you need to acquire a credit card, though you lack a lengthy credit history, think about getting someone to co-sign your application. Co-signers can be friends, relatives or anyone with a solid credit history of their own. They have to be willing to state they will pay what you owe if you are unable to pay it. This is a good method for improving and building your credit.
Don’t use an easy pin for card, or you are setting yourself up for trouble. Do not use anything simple like your birthday or your child’s name since this information can be accessed by anyone.
Almost everyone has had this happen. Another annoying credit card solicitation comes in the mail, asking you to get one of the company’s cards. You might be looking for a credit card, however, it is far more likely that you are not. Don’t just throw this mail away, shred or rip it up. Don’t toss it without tearing as there may be personal information in the envelope.
Keep a list that has all of your card numbers and lender contact numbers on it. Secure the list in a spot away from the cards themselves. Such a list is helpful when you need to quickly get in touch with lenders in the event your cards are lost or stolen.
Most experts agree that the maximum limit on your credit card should not exceed 75% of your monthly salary. If your limit is larger than one month’s salary, you need to pay it off as soon as you can. This happens when the interest builds up it becomes too hard to pay back.
If you find yourself dissatisfied with the interest rate on your card, request an adjustment. If they are unwilling to lower the rate, and you have been paying on time, look at other cards with a better rate. Once you find a company that is better for you, switch to them.
Do not open and close bank cards frequently. You don’t want to go to a different account. This should happen only when you really need to. The longer your positive credit history is with a creditor, the better your credit score. A key trick to establishing solid credit is to keep accounts open for long periods of time.
If you’re paying a high APR on your cards, see if you can get it lowered. In many cases, they’ll be more than willing to oblige. That can save you money each month you carry a balance.
As you can see, charge cards have plenty of uses. They run the gamut from paying at a store to increasing a person’s overall credit score. Keep this advice in mind the next time you use your credit card.