There are people who find the idea of credit cards to be somewhat frightening. This is understandable, but credit cards do not have to be scary. Credit cards are often a necessity for online purchases, car rentals and hotel stays. Read on to find tips and advice for using your credit cards in an educated and beneficial way.
Only inquire in regards to opening retail cards if you seriously shop at that store regularly. Every time you apply for a retail credit card, an inquiry is noted on your credit report. Excessive inquiries from those retailers on your report can drop your credit score.
Carefully study all of the small print. Make sure you know exactly what is being offered in that pre-approved credit card before you take advantage of it. Always be aware of what your interest rates are, as well as the amount of time you have to pay those rates. Also, know what fees are associated with the account and if there are any grace periods.
Make sure you are fully aware of your card agreement’s terms. Most companies think the first time you use their card constitutes accepting their terms. The agreement may have fine print, but it is critical for you to carefully read it.
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Pay each month’s credit card bill on time. You may have to pay large fees if you ignore the due date on your credit card statement. Plus, many companies will increase your interest rate, making all of your purchases in the future cost you even more.
Don’t use an easy pin for card, or you are setting yourself up for trouble. Don’t use something obvious, like your birthday or your pet’s name, because that is information anyone could know.
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When you use a credit card online, keep a copy of your sales receipt. Keep this receipt so that when your monthly bill arrives, you can see that you were charged exactly the same amount as on the receipt. If an error has occurred, lodge a dispute with the seller and your credit card provider immediately. Doing so helps to prevent overcharges on purchases.
Keep a close watch on your credit rating. A good credit score is considered by credit card companies to be over 700. Put your credit to work to maintain that score or to help you reach it. At a score of 700 or higher, you’ll receive the best credit offers with the lowest rates.
Almost everyone has had this happen. “You have been pre-approved for a credit card!” Sometimes you are in the market for one, and often times you may not be. Tear up or shred credit card offers before disposing of them. Avoid tossing it in the garbage intact because the application might contain some confidential information.
Check with card companies about whether they’re willing to reduce their rates. There are companies which will reduce the interest charged, if they’ve got a long-standing relationship with them. It can save you a lot of money and asking will not cost you a cent.
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Don’t give credit card numbers out on the internet or on the phone, unless you know and trust the vendor you’re dealing with. Be weary if you’re receiving unsolicited offers that require you to give out your credit card number. Scams and frauds abound and they will be more than happy to get their hands on the numbers associated with your credit cards. Protect yourself and be diligent.
Talk over your interest rate with the company that issued your card. If you contact the company directly, you could end up bartering your way to lower rates every month. You can probably get a lower APR by requesting it, presuming you have been a good customer who makes timely payments.
Stay away from any card that imposes an annual fee. People with good credit scores are usually offered the cards without the annual fees. These fees can wipe out any perks the card offers, though. Calculate it for yourself. Issuers obviously will not advertise the fees; you will have to go over the fine print to find them. Get your reading glasses out! Make sure any fees do not outweigh the benefits. Many times, they don’t.
If the APR on your credit card is very high and you have excellent credit, you can call your creditor and request a lower rate. Sometimes, they may actually agree. Any reduction in interest rate can really add up to huge savings for you in the long run.
Credit Card Spending
Post a running tally of your current month’s credit card spending on your refrigerator or bulletin board. This can help you keep track of your spending and what your balance on each card is. Too often, we let credit card spending get out of control by not self-monitoring and before long, we find ourselves in hot financial water!
If you are thinking about applying for a credit card which is offering cheap balance transfers or a great introductory interest rate, make sure that you read all of the small print in the terms and conditions. Understand what the interest rate will revert to after the initial introductory rate. It is easy to suffer with high interest rates that have been overshadowed by great introductory offers. Just make sure you know exactly what you will be getting into before you sign up for an offer.
Before you get any credit card just be sure to read all documentation first. Most often, you will be required to put up a small deposit, but that may be quickly used up by unforeseen fees, which will in turn reduce the line of credit available to you.
You should aim to contact your card company prior to using your credit card for big ticket items that are not typical for you. Making a purchase that is really big or traveling to another country can be examples of when it would be a good idea to do this. This can keep your company from raising the identity theft alarm and shutting off your card.
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The credit card advice from this article should help anyone get over their fear of using a credit card. Credit cards are useful when used correctly, so nobody should fear using one. Just remember the tips you have learned here and your financial situation will be fine.