Interested In Getting Your First Credit Card? Check Out These Great Tips!
Credit card use can be a tricky thing, given high interest rates, hidden charges and changes in laws. As a consumer, you need to be educated and aware of the best practices when it comes to using your credit cards. Read on for some valuable tips on how to use your cards wisely.
Keep track of how much money you are spending when using a credit card. Small, incidental purchases can add up quickly, and it is important to know how much you have spend on them, so you can understand how much you owe. You can keep track with a check register, spreadsheet program, or even with an online option offered by many credit card companies.
Decide what rewards you would like to receive for using your credit card. There are many options for rewards that are offered by credit card companies to entice you to applying for their card. Some offer miles that can be used to purchase airline tickets. Others give you an annual check. Choose a card that offers a reward that is right for you.
If you have a credit card with high interest you should consider transferring the balance. Many credit card companies offer special rates, including 0% interest, when you transfer your balance to their credit card. Do the math to figure out if this is beneficial to you before you make the decision to transfer balances.
Take the time to play around with numbers. Before you go out and put a pair of fifty dollar shoes on your credit card, sit with a calculator and figure out the interest costs. It may make you second-think the idea of buying those shoes that you think you need.
It can not be stressed enough how important it is to pay for your credit card bills no later than the invoice deadline. Every bill you receive will have a due date and failing to pay by then will result in penalties and costly fees. Additionally, most companies will increase the interest rate on your credit card, which means an increase in the cost of every purchase you put on that card thereafter.
There are many cards that offer rewards just for getting a credit card with them. While this should not solely make your decision for you, do pay attention to these types of offers. I’m sure you would much rather have a card that gives you cash back than a card that doesn’t if all other terms are close to being the same.
Keep an eye on your credit cards even if you don’t use them very often. If your identity is stolen, and you do not regularly monitor your credit card balances, you may not be aware of this. Check your balances at least once a month. If you see any unauthorized uses, report them to your card issuer immediately.
Whenever you are considering a new credit card, you should always avoid applying for credit cards that have high interest rates. While interest rates compounded annually may not seem all that much, it is important to note that this interest can add up, and add up fast. Make sure you get a card with reasonable interest rates.
If you are having a problem getting a credit card, consider a secured account. A secured credit card will require you to open a savings account before a card is issued. If you ever default on a payment, the money from that account will be used to pay off the card and any late fees. This is a good way to begin establishing credit, so that you have opportunities to get better cards in the future.
Keep a close watch on your credit rating. Many credit card companies look at a score of 700 to be good. Wisely use your credit in order to maintain this level or to reach this level if you aren’t this high yet. Once you have a credit score of around 700 or more, you’ll be offered excellent credit offers with very low rates.
Maintain a list of all your credit card numbers and the emergency phone numbers for your lenders. Leave it in a safe area and keep it separated from credit cards. The list will assist you in promptly notifying card lenders should you lose your cards or have them stolen.
You should ask the people at your bank if you can have an extra checkbook register, so that you can keep track of all of the purchases that you make with your credit card. Many people lose track and they assume their monthly statements are right and there is a huge chance that there may have been errors.
Secured credit cards could be the best option when your credit is less than stellar. These are cards that require a balance as collateral. You basically borrow money from yourself, although you have to pay interest on the loan, too. Not the best idea, but it can help you better your credit. Choose reputable companies when you sign up for secured cards. As time goes by, you might even find that the company offers you an unsecured credit card.
An important thing to remember when using credit cards is to do whatever is necessary to avoid going over your specified credit limit. By making certain that you always remain within your allowable credit, you can avoid costly fees that card issuers frequently assess and guarantee that your account always remains in good standing.
It goes without saying, perhaps, but always pay your credit cards on time. To be able to follow this simple rule, do not charge more than you afford to pay in cash. Credit card debt can quickly balloon out of control, especially, if the card carries a high interest rate. Otherwise, you will find that you cannot follow the simple rule of paying on time.
Hopefully, this article has provided you with some helpful guidance in the use of your credit cards. Getting into trouble with them is much easier than getting out of trouble, and the damage to your good credit standing can be devastating. Keep the wise advice of this article in mind, the next time you are asked if you are paying in cash or credit.