There are people afraid of using a credit card because of the myriad of problems they can present. However, when used properly, they are a great financial tool. Charge cards are great for the times you want to buy something, but desire to not use cash to make the payment. The article below discusses some of the best credit tips.
Make timely payments on your credit card accounts to maintain a high credit score. Paying your bill late can cost you both in the form of late fees and in the form of a reduced credit score. You can avoid being late by putting your credit card payments on an automatic schedule.
Pay 100% of your credit card bill each month if you can afford it. You should view credit cards as a convenience form of payment, and budget the full payoff each month. Credit helps to improve a credit score, but you must pay off the balance each month to avoid interest charges.
If you are looking to open a credit card though you do not have any type of established credit, finding someone to co-sign for you can do the trick. Anyone with established credit can be a co-signer. A co-signer states they are willing to be responsible for the debt if you default. Doing so is a good way to start building credit.
Read the terms of your credit card agreement carefully before you use your credit card for the first time. Most companies consider you to have agreed to the card agreement when you first use the card. The print on the agreement may be small, but it is important to read it carefully.
Credit cards are usually tied to varying types of loyalty programs. If you are a regular credit card user, sign up for a card that offers incentives you can use. This can actually provide a lot of benefits, if you use it wisely.
Open and read all emails or letters in the mail about your credit card, as soon as you receive them. Credit companies can make all kinds of changes to interest rates and fees; they just have to provide you with written notification of those changes. If the terms are not ones that work for you, cancelling the card is an option.
When you use a credit card online, keep a copy of your sales receipt. Keep it until you receive your statement so you can be sure the amounts match. If they didn’t, call the company and immediately file a dispute. This is necessary to ensure you are not overcharged for your purchases.
If you use charge cards, consider obtaining a free credit report every year. Check to ensure that all the information is correct. Make sure that everything in the report matches up and that your credit history is being reported with a great level of accuracy.
Call your credit company and ask them if they will lower your interest rate. In many cases, companies are willing to lower the interest rates of customers who they have a lengthy and positive relationship with. This can save you hundreds of dollars a year and all it takes is a phone call.
Know that some charges, like restaurant and grocery charges, take longer to appear on your statement than others. Because you will think your balance is lower than it really is, you could end up spending more.
While you may be a little tempted to purchase most things with a credit card, small purchases should be avoided if you can. You may find yourself buying things you don’t even need, because a lot of merchants have a minimum amount for credit card purchases. The rule of thumb is to use your credit card when the amount due is over $10.
Adjust your budget to incorporate paying off credit bills in full each month. If you have a credit card that has an interest rate more than %, then you have to pay a charge every month if you don’t pay the card off in full. Only paying the minimum amount due will result in taking much longer to pay off the balance, and you will pay a lot more in finance charges.
It is inadvisable to pay a credit card’s balance with a different credit card. Some cardholders are desperate enough to seek a cash advance on a credit card, so they can make a payment on that same card, using a money order; they think they are getting another month to escape an emergency. This kind of thing will actually just set you up for a bigger problem in the following months.
It is a great idea to let your credit card issuer know when you’re using the card in an unusual way. Making very large purchases and traveling out of the country are instances of situations where you need to give advance notice to the card companies. This makes it less likely your credit card company will suspect identity theft and suspend your account.
The advice in this article will likely help any consumer overcome their fear of credit card use. When used properly, credit cards are useful, so do not be scared to use yours. Always remember the good advice you have been given and you will not have any problems.