Don’t let the fear of credit cards stop you from improving your score, buying the things you need or want. There are proper ways to use credit cards, and when done correctly, they can make your life better instead of worse. This article is going to show you just how to do it.
Make sure that you make your payments on time when you have a credit card. The extra fees are where the credit card companies get you. It is very important to make sure you pay on time to avoid those costly fees. This will also reflect positively on your credit report.
Always make sure there is not a yearly fee attached to any credit card that offers rewards or perks. Depending on how exclusive the card is, a platinum or black card may carry a fee of $100 to $1000. Unless you have some specific need for exclusive credit cards, remember this tip and save yourself some money.
Pay your minimum payment on time each month, to avoid more fees. If you can afford to, pay more than the minimum payment so that you can reduce the interest fees. Just be sure to pay the minimum amount before the due date.
Make sure you thoroughly understand the terms before signing up for a new credit card. You could discover the interest rate, fees, and payment schedule are a lot more than you anticipated them to be. Read all the fine print in order to make certain that you understand the card policy completely.
Do not use public computers to make purchases with a credit card. Your information may be stored, making you susceptible to having your information stolen. To avoid this possibility, only make online purchases on private computers. For credit card purchase, only use your personal computer.
Consider unsolicited credit card offers very carefully before you accept them. If an offer that comes to you looks good, read all the fine print to make sure you understand the time limit for any introductory offers on interest rates. Also, be aware of fees that are required for transferring a balance to the account.
If you can’t get a credit card because of a spotty credit record, then take heart. There are still some options that may be quite workable for you. A secured credit card is much easier to get and may help you rebuild your credit record very effectively. With a secured card, you deposit a set amount into a savings account with a bank or lending institution – often about $500. That amount becomes your collateral for the account, which makes the bank willing to work with you. You use the card as a normal credit card, keeping expenses under that limit. As you pay your monthly bills responsibly, the bank may decide to raise your limit and eventually convert the account to a traditional credit card.
Never give your credit card information to anyone who calls or emails you. Many dishonest people use this ploy to get credit card information from unsuspecting people. Only provide your number to businesses that are trusted and your card company only when you actually call them. Don’t give them to random phone callers. No matter who the person says they are, don’t know truly know their identity.
If you have poor credit, you may want to apply for a credit card that is secured. Secured cards require you to pay a certain amount in advance to get the card. What these cards let you do is borrow money from yourself and you will pay interest to do so. It isn’t the best, but it can help to repair bad credit. Stick with companies that have a good reputation when you are getting a secured card. As time goes by, you might even find that the company offers you an unsecured credit card.
Do not sign up for store cards in order to save money on a purchase. Often times, the amount you will pay for annual fees, interest or other charges, will easily be more than any savings you will get at the register that day. Avoid the trap, by just saying no in the first place.
If you have made the poor decision of taking out a cash loan on your credit card, be sure to pay it off as soon as possible. Making a minimum payment on this kind of loan is a big mistake. Pay the minimum on other cards, if it means you can pay this debt off faster.
Before you pick a credit card be sure that it accepted at most businesses in your area. There are only a few credit card companies that are accepted nationwide, so be sure you know which ones these are if you plan to purchase things around the country. Also, if you plan to travel abroad, be sure you have a card that is accepted where you might travel as well.
Don’t place your credit card number on anything that is visible to the public. This includes on the backs of postcards, on the outside of envelopes, and on publicly visible (and unsecure) areas of social media sites like Facebook, LinkedIn and Twitter. Sharing your information on mail or on social media can lead to serious credit theft.
Shop different credit cards before applying to find out the perks each offers. Some offer roadside assistance, while others offer airline perks, like free baggage check. Some will also offer buyer protections, above and beyond what a store offers. Depending on your buying habits, one credit card may offer perks that fit you best.
Transferring a credit card balance from a high interest credit card to a card where the rate is less, can save you money every month. Credit card companies offer special introductory rates to attract new business to their credit cards. If you take advantage of one of these offers, make sure that you understand the amount of time that the introductory rate offer lasts.
You have read a lot here today about how to avoid common mistakes with credit cards, and also the best ways to use them wisely. Although there is a lot of information to learn and remember, this is a good starting point for making the best financial decisions that you can.
0 responses on "Using Credit Cards Responsibly For Financial Freedom"