It is often hard to find a good credit card offer in all of the bad ones. Some cards offer low rates, some are easy to receive, and others offer great card rewards. What is a consumer to do? The tips presented below will teach you just about everything that you need to be aware of when considering a credit card.
Immediately report any fraudulent charges on a credit card. This will help your creditor catch the person who is using your card fraudulently. This is also the best way to make sure that you are not held responsible for these charges. It is fairly simple to report erroneous charges, either with an email or phone call to the credit card company.
Make sure you know your card’s interest rate. It is essential that you find out before you ever sign up for the card. If you are unsure, over time you might pay much more than what items actually cost. If you’re paying more, you may not be able to afford to pay off the debt each month.
Always know the amount of your current balance. Be sure that you’re aware of what kind of limits are on your credit card account. Going over this limit will result in greater fees incurred. This will make it harder for you to reduce your debt if you continue to exceed your limit.
It is very important to read all correspondence from your credit card company, including emails. Credit cards companies can change their policies, fees and interest rates so long as you receive a written notice that they are doing so. If you don’t agree with their changes, it’s your decision if you want to cancel your credit card.
Never write down your password or pin number, for any reason. Memorizing your PIN or password is essential, and it helps to ensure that only you can access your account. If you write down these passwords or pins, you could potentially give someone who you do not want to have access to your accounts an open door to them.
Before using your credit card online, check to verify that the seller is legitimate. Check to see if the company has posted a physical address on the site for their operations. You might also want to call phone numbers listed on the website to verify they are still active.
Check your credit score annually. Having a credit score that’s about 700 is what a lot of companies consider the limit for good credit. Strive to maintain or reach that level by using your credit properly. When you have a score that is around 700, or even higher, then you can get good credit offers that have minimal rates.
If your credit has been damaged, you can apply for a credit card which is secured. These cards require balances as collateral. You basically borrow money that you already have and pay for the privilege of doing so. Not ideal, but it may be the only way to repair your credit standing. Stick with good companies that have a reputation when you apply for a credit card. They might eventually offer you a card that is unsecured which is even better.
Some people avoid getting any credit cards, to afford the appearance of having no debt at all, and this can be a mistake. It is a good idea to have a credit card so you can start building a good credit history. Use the card, and pay it in full every month. If you do not have a history of credit usage, your credit score will actually be lower and potential lenders will not have any way to see if you can handle credit.
Don’t ever fax other people a credit card number. A fax could sit in a basket in some office for hours or days, letting everyone in the office know your credit card details. Anybody in the office is a potential thief. This exposes you to credit card fraud and various other issues.
Make sure that you are honest about your income when applying for a bank credit card. If a company doesn’t verify that the information regarding your income is true, you may get that higher limit – and you may rack up charges that you truly cannot afford to repay.
Consumers are constantly inundated with credit card offers, and it can become tough to sort through and find the good ones. With a little knowledge and some research, understanding charge cards, and accepting the right one, becomes easier. This article should give consumers the information needed to make smart decisions with bank cards.