Having a credit card can help people all over reach lifestyle goals. Having one opens doors and allows for increased financial freedom. That said, you must be wise in your credit card choices and uses. Continue reading for great advice on how you as a consumer can do this.
Fees from going over the limit want to be avoided, just as late fees should be avoided. Both are high fees and going over your limit will also damage your credit score. This is a very good reason to always be careful not to exceed your limit.
Always make timely credit card payments. You should always be aware of when any credit card bills are due so that you do not incur any fees. You may also have to pay more interest on future purchases if you engage in this behavior.
Read all correspondence from your credit card company and other financial institutions right away. Card issuers have the ability to adjust fees and interest rates, provided they let you know about it in writing. If you don’t wish to comply, you are allowed to cancel that credit card.
Never make purchases with your credit card, that you cannot afford. Even though you really want that new flat-screen television, credit cards are not necessarily the smartest way to purchase it. If you can’t pay off the balance right of way, you will risk not being able to make your monthly payments and owing quite a bit of interest. Take your time outside of the store before making a purchase. Normally, the store itself has lower interest than credit cards.
No matter how tempting, never loan anyone your credit card. Even if the friend is a very good one and they are really in need of the card, it just isn’t a smart idea to lend yours out. You might have over the limit charges if more is charged by your friend than you authorized .
Never give out a credit card number over the phone if someone else initiates the request. It is always a mistake to give out your confidential information to anyone over the telephone as they are probably scammers. Only provide your number to businesses you trust, along with your card company if you call about your account. Don’t give them to random phone callers. No matter who the person says they are, don’t know truly know their identity.
Never believe your offered interest rate is absolute and should remain this way. Credit card companies are competitive and can change their interest rates if they wish. You can contact the band and request a lower interest rate, if you think it is too high.
See if your credit card issuer is willing to lower your interest rate. Some issuers will reduce interest rates charged to customers if their credit relationship is in good standing. It may save you a lot of money later and it doesn’t cost anything to ask them.
You shouldn’t be scared of paying off one credit card with a different one, providing that the card your paying with has lower interest rates and fees. Even if the interest rates are comparable, other cards might offer perks and points you can use towards rewards like airline tickets. Just make certain to sit down and do the math first.
It is not wise to always choose your credit card instead of your debit card just because you are trying to collect rewards or frequent flyer miles. If you put all your charges on one card because you want plane tickets and free air miles, you may get them. This can also lead to high interest and other fees that would be more expensive than the rewards earned.
Many times, bank cards will open up new opportunities and allow for some breathing room with monthly spending. When used correctly they can be wonderful assets, but when they are used carelessly, the consumer will fall victim to credit misery. The above article had great advice to help consumers make wise credit card choices and avoid negative consequences.