Saturday, September 17, 2016

Need Some Credit Card Advice? Read On

Credit cards are helpful when it comes to buying things over the Internet or at other times when cash is not handy. If you need some advice on how to use credit cards responsibly, the following tips can offer you some guidelines.

Be sure to limit the number of credit cards you hold. Having too many credit cards with balances can do a lot of harm to your credit. Many people think they would only be given the amount of credit that is based on their earnings, but this is not true.

Be safe when giving out your credit card information. If you like to order things online with it, then you have to be sure the website is secure. If you notice charges that you didn't make, call the customer service number for the credit card company. They can help deactivate your card and make it unusable, until they mail you a new one with a new account number.

Only inquire about opening a retail credit card if you are serious about shopping at the store regularly. If a retail store inquires on your credit, the inquiry will affect your credit score, even if you do not open the card. Too many inquiries on your credit can lower your credit rate.

Consider the different loyalty programs offered by different companies. As long as you are in the habit of paying with a credit card, be sure to find a program which will reward you for using it. This can provide you with extra income, airfare, or other rewards, if you use the card wisely.

Each month when you receive your statement, take the time to look over it. Check all the information for accuracy. A merchant may have accidentally charged a different amount or may have submitted a double payment. You may also find that someone accessed your card and went on a shopping spree. Immediately report any inaccuracies to the credit card company.

Almost everyone has had this happen. Another annoying credit card solicitation comes in the mail, asking you to get one of the company's cards. Often times you won't be interested in getting a new credit card right them. Always shred any credit card offer that comes through the mail. Avoid tossing it in the garbage intact because the application might contain some confidential information.

You may want to consider using layaway, instead of credit cards during the holiday season. Credit cards traditionally, will cause you to incur a higher expense than layaway fees. This way, you will only spend what you can actually afford during the holidays. Making interest payments over a year on your holiday shopping will end up costing you far more than you may realize.

If you do a lot of traveling, use one card for all of your travel expenses. If it is for work, this allows you to easily keep track of deductible expenses, and if it is for personal use, you can quickly add up points towards airline travel, hotel stays or even restaurant bills.

Those with imperfect credit may want to think about getting a secured card. These cards require some kind of balance to be used as collateral. In actuality, you simply use your own funds and pay interest in order to hold the card. This is not a perfect situation, but it can help rebuild damaged credit. Stick with good companies that have a reputation when you apply for a credit card. Once you've resolved your credit issues to an extent, you may be able to get an unsecured card with the same company.

If you cannot pay your entire credit card bill each month, you should definitely keep your available credit limit above 50% after each billing cycle. Having a good credit to debt ratio is an important part of your credit score. Make sure that your credit card is not constantly near its limit.

Do your research on the best rewards cards. Whether you are interested in cash back, gifts, or airline miles, there is a rewards card that can really benefit you. There are many out there, but there is a lot of information available online to help you find the right one. Be careful to not carry a balance on these rewards cards, as the interest you are paying can negate the positive rewards effect!

If you use your credit cards to pay for gas, do not run too close to your spending limit if you have a purchase coming up. Many gas stations will put a $75 hold on your credit card for a few days, eating up your available space, meaning you can not charge other things.

If your credit card is charging you a high rate of interest on your balance, consider transferring it to a lower interest rate card. This can save you a lot while you are working to pay down that balance. The key is to not charge any more on the old card once you have transferred your balance, or you will end up in a worse financial situation.

If you want to avoid losing a credit card, you will have to use it on a regular basis. If you don't use the card, it may be too unprofitable for the card company to maintain the account, and they may quickly shut it down. Try paying the balance off on your credit card immediately to reduce interest expenses.

When offered a credit card with a freebie, be sure to make sure that you check all of the terms of the offer before applying. This is critical, because the free items may be covering up things such as, a yearly fee of an obscene amount. It is always important to read the fine print, and not be swayed by free items.

Hopefully, this article has provided you with the information you are searching for. We can never be too careful with our credit or spending and too often we realize the errors of our ways when it is too late! Remember the guidance in this piece in order to get the most out of credit card utilization and do the least damage to your personal finances.

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