Let’s face it, in today’s society, consumers need all the advice they can get on managing their finances and avoiding the pitfalls presented by over-spending! Charge cards are a huge liability that can wreak havoc on your finances. Read on to learn how to properly utilize your credit responsibly and what to avoid.
If a fraudulent charge appears on the credit card, let the company know straightaway. This gives the credit card companies the most opportunity to catch the person responsible. This also ensures that you will not be liable for any further charges. If you suspect fraudulent charges, immediately notify the company your credit card is through.
Always make sure there is not a yearly fee before accepting an exclusive credit card. Annual fees for high end cards can be very high depending on the card’s exclusivity. If you don’t have to have a card that’s exclusive, find a card with no annual fee and don’t waste your money on the premium card’s steep annual fees.
Be sure to read the terms that come with your credit card account before using it. The agreement might be rendered in fine print, but it is critical for you to carefully read it.
Exercise some caution before you start the process of applying for a credit card offered by a retail store. When a retail store inserts an inquiry onto your credit in order to qualify you for a card, this is recorded onto your credit report regardless of whether you actually open up the card. If you have too many credit inquiries, your credit score may take a hit.
Credit Card
Always read emails or letters from your credit card. You can cancel a credit card if you don’t agree with this.
If you are searching for a new card, you should limit your search to the cards with low rates and with no annual fee. There are plenty of cards that don’t come with an annual fee, so getting one that does is foolish.
Don’t write your credit card’s PIN or password. You must remember the time to memorize these passwords and pin numbers to ensure that only you know what they are.
Don’t believe that interest offered to you are written in stone and cannot be changed. Credit card companies normally have several interest rates they can use at their discretion. If you do not like your current rate, contact your bank and tell them you would like them to lower it.
Don’t have any new credit cards sent to you if you have a mailbox that is not locked at all times. Credit card theft often takes place by simply removing a new credit card from an unlocked mailbox.
These are cards require you to add a balance to be used as collateral. In essence, you simply use your own funds and pay interest in order to hold the card. Not a very good idea, but it may be the only way to repair your credit standing. Just make sure you still need to ensure the company you’re dealing with a reputable company. They might offer you a card that is unsecured which can further enhance your credit score.
Some have the mistaken idea that having no credit cards so it will look like they can do for their credit. You should always have at least one credit card if you can establish credit. Use this and pay off every month. If you have no credit history, your credit score will actually be lower and potential lenders will not have any way to see if you can handle credit.
Be cautious when you use a credit card online. Make sure to only purchase from a security encrypted site. A site that is secure will keep your data confidential. Additionally, ignore those emails that want your credit card information, because these are attempts to steal your credit identity.
Credit Bureaus
Avoid prepaid cards when looking for a secured card. These are typically debit cards and don’t report to any of the credit bureaus. A lot of them will charge extra fees and are basically no more than checking accounts. Put down a deposit and get yourself an actual secured credit card so that it reports to the credit bureaus, and acquire a secured credit card.
Keep track of your credit score. A score of 700 is what credit companies feel the limit should be when they consider it a good credit score. Put your credit to work to maintain that score or to help you reach it. This will enable you to take advantage of the very best credit offers, including low rates of interest and fantastic incentives.
Some fees that you may overlook include the annual fee, excessive late charges, which may make you think twice about having the card.
Monitor all your card’s transactions on a regular basis. You could register for mobile alerts if they are available. This gives you the opportunity to report any irregular activity right away. If you notice suspicious activity on your account, you should contact your bank immediately, and if necessary, get a hold of the police.
If someone calls requesting your card number, don’t give it to them. Scammers use this trick all the time. You should never reveal your credit card number to businesses you do not trust, and even with your own card company you should only supply your number if you initiated the call. Never provide this number to someone who calls you. It doesn’t matter what they say, there is no way to know who they really are.
Having a credit card can present some challenges as well as rewards. It can provide financial flexibility, but it can also burden a card holder with excessive debt. Ideally, you have picked up some handy spending advice from this article and have a better idea about how to use your charge cards in a safe and responsible manner.