It’s always handy to carry a little cash, but more and more, charge cards are becoming the standard way of purchasing things. As banks are steadily increasing their fees for using debit cards and having regular accounts, many people are choosing to use charge cards. Keep reading to find out how to use credit cards wisely.
If you cannot afford to pay cash for something, think twice about charging it on your credit card. It’s fine to use credit cards to stretch out the payments for an item you can afford, but refrain from making a major purchase that you couldn’t afford otherwise.
If you have trouble getting a credit card on your own, try to find someone who will co-sign for you. This can be anyone who trusts you, like a relative or close friend. It’s important to know that being a co-signer means that person is liable for the credit card bill in full if you don’t pay it. Doing so is a good way to start building credit.
Use bank cards intelligently. Put a limit on how much you spend and only buy items you know you can afford. Before deciding on what payment method to select, be certain you can pay the balance of your account in full within the billing period. By carrying a balance, it’s easy to create more and more debt, making it harder to get the balance paid off.
Be sure you go over the terms that come with your credit card as carefully as possible prior to using it. Many companies consider you have accepted the terms when you initially use the credit card. No matter how small the print is on your agreement, you need to read and understand it.
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. Paying huge amounts of money on interest is not smart and should be avoided. Take your time outside of the store before making a purchase. Then, if you decide to purchase it, you may be able to get low interest rates through in-house financing.
Always memorize any pin numbers and passwords for your bank or bank cards and never write them down. Make sure you know your password so you ensure that only you have access to it. Putting the number and password down on paper can be an invitation to fraud and financial disasters.
Keep track of your credit score. Most credit card issuers want borrowers with credit scores of 700 or above. Put your credit to work to maintain that score or to help you reach it. By having a score of seven hundred or higher, you will get the best offers and you will have the lowest rates at the same time.
We have all gone through it. Getting one envelope after another in our mail from credit card companies, imploring us to sign up with them. Often times you won’t be interested in getting a new credit card right them. Always rip up any credit card mail that you plan on throwing away. Don’t toss it without tearing as there may be personal information in the envelope.
If you use credit cards, consider obtaining a free credit report every year. Check to ensure that all the information is correct. Compare the credit card debt shown on your report to your statements to make sure the information matches.
Once you do open a credit card account, aim to keep it open for as long as possible. It is unwise to move to different issuers unless you have to. Your credit score is affected by the overall duration of your account history. Keeping accounts open for as long as possible will help build credit.
Maintain a tally of your credit card expenditures each month. Remember that incidental and impulse buys will add up quickly. If you spend without much consideration, you may find that you cannot repay the full balance when the bill arrives.
Never give out your card number over the phone unless you trust the company and you initiated the call. If you’re receiving requests for your card number, be cautious. There are tons of scams that want your card number. Be aware and keep yourself protected.
Charge cards have always been useful when they are used responsibly. They are particularly handy now, as debit cards begin to suffer from more fees and restrictions. Now that the market is expanding, you can also benefit from having a credit card. Apply what you’ve learned in this guide to get all what you can from charge cards.