It can be dangerous to use credit cards; you may have heard warnings about overspending, paying high interest or borrowing too much. But, if you used properly and responsibly, a credit card can have its perks. Many enjoy the convenience of a credit line and benefit from their credit company’s reward programs. Read this article to learn of the positive side of bank cards.
Only inquire in regards to opening retail cards if you seriously shop at that store regularly. Even applying for a card with the store will reflect badly on your credit score if you’re not accepted, and there’s no sense in applying if you’re not a regular shopper. Too many inquiries into your credit history will be a red flag to possible lenders and will lower your overall credit score.
If you’re able to, always pay your credit card debt off in full every month. The best use of bank cards is for convenience to be fully paid within the same billing cycle. Your credit score benefits from the credit card use, and you won’t have finance charges if paid in full.
Open and go over everything that is sent to your mail or email about your card whenever you get it. Credit companies can make all kinds of changes to interest rates and fees; they just have to provide you with written notification of those changes. If you have an issue with these changes, you have every right to cancel your card.
Be sure you check regularly to see if anything in your conditions and terms changes. It’s not uncommon in recent times for a card company to change their terms frequently. You will find these changes deep down in the fine print. It is especially important to look for changes in rates and fees.
Avoid purchasing items out of your budget with your credit card. No matter how nice an item is, you shouldn’t use a credit card to finance an item if you cannot afford it. You will end up paying more for the product than it is worth! Leave before buying anything, think it through and then return if you want to buy it. If you are still set on buying it, you are probably eligible for the store’s financing program that will save you money in interest over the credit card company.
When you make online purchases with your credit card, always print out a copy of the sales receipt. Retain the receipt until the bill arrives so you can ensure that you were charged the proper amount. If they did not, contact the company and file a dispute immediately. This is a great way to make sure you are never overcharged for the items you buy.
Never keep a written record of your pin number or password. You need to remember your password without writing it down so that other people can’t access it. If you write it down and keep it near the card, it will be like giving someone an invitation to commit fraud.
Online purchases should only be with trusted vendors whom you have checked out before divulging information. Call the company to talk with representatives and never buy from a merchant that does not provide a physical address.
All of us have been there. You get a credit card advertisement in the mail and it asks you to get a card from them. While there may be occasions on which you appreciate the solicit, odds are, most of the time, you won’t. Whenever you discard this type of mail, you need to destroy it. Avoid tossing it in the garbage intact because the application might contain some confidential information.
If you’re not pleased with the interest rate, ask your bank to change it. If they end up refusing you, you can always look for a credit card with better interest rates. When you discover one, switch to a company that will serve you better.
Keep a running total of the monthly expenditures you charge to your charge cards. This will help keep you from impulse purchases that can really add up quickly. If you aren’t tracking your credit card balance, you may be surprised when you get your statement at the months end.
Charge cards can provide many benefits when used in a smart way. Whether it is the confidence and peace of mind that comes with knowing you are prepared for an emergency or the rewards and perks that give you a little bonus at the end of the year, credit cards can improve your life in many ways. Use your charge cards carefully for a more positive financial future.