Great credit cards can be lifelines in financial jams. Are you lacking in cash, but need to make a purchase? No problem! Using a credit card will enable you to make the payment. Are you attempting to build a good credit score? The process can be simple with a credit card. Continue reading to find out other ways to make use of a credit card.
Check your balance carefully when your statement arrives. Know the credit limit of that card. When you exceed the limit, many fees may be awaiting you. It will take much longer for someone to pay their balance down if they exceed their limit consistently.
Carefully consider those cards that offer you a zero percent interest rate. It may seem very alluring at first, but you may find later that you will have to pay sky high rates down the road. Learn how long that rate is going to last and what the go-to rate will be when it expires.
Do not use one credit card to pay off the amount owed on another until you check and see which one has the lowest rate. While this is never considered the best thing to do financially, you can occasionally do this to make sure you are not risking getting further into debt.
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
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.
A great tip for saving on today’s high gas prices is to get a reward card from the grocery store where you do business. These days, many stores have gas stations, as well and offer discounted gas prices, if you sign up to use their customer reward cards. Sometimes, you can save up to twenty cents per gallon.
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.
After you close a credit account, be certain to physically destroy the card. If you decide to throw it into a drawer or give it to your child to play with, it could end up in someone’s hands, and they could use the information to reopen the account and charge up debt in your name.
A lot of banks no longer issue secured credit cards, but it is common to find them being offered through credit unions. If you would like to sign up for a secured credit card, you can open an account with a credit union and take advantage of whatever cards they offer.
A useful tip for ensuring smart usage of credit cards is to only use them for purchases in amounts that are sure to be available in your bank account by the time the monthly statement arrives. By restricting purchases to amounts that can be easily repaid in full, you will build a solid credit record and maintain a strong relationship with your card issuer.
Keep a tally of your credit card charges, and post it in a prominent spot of your home. By having it in a visible area, you will always know how much you are charging to the card. If we don’t control our credit, it will quickly snowball out of control.
Read all fine print when it comes to balance transfers and credit cards with a low introductory rate. Have a true understanding of what occurs after the introductory period is complete. Oftentimes, such offers come in tandem with super-high interest rates that are retroactive if you haven’t paid off your balance. Ensure that you understand the situation before you sign up.
Don’t apply for a bunch of credit cards at one time. Applying for too much credit at once, makes you look desperate to creditors and can, therefore, harm your credit score. Apply for one credit card and use it sparingly, instead of applying for a lot of credit cards at one time.
If you discover your card is missing, immediately alert your credit company. You may find no way to avoid taking responsibility for the charges if a thief uses your credit card before you have it canceled by the company. Once you report your card missing or stolen, the credit card issuer can’t make you responsible for unauthorized charges.
It is remarkable how many uses a credit card has. This ranges from simply buying things at a checkout line to trying to boost your credit score. Consult the information you have just read before you begin using any credit card.