When people think of credit cards, they think of spending dangers and ridiculous interest rates. However, if used properly, credit cards can give you some great benefits. This article will provide you with information about making sound financial decisions with your credit cards.
Do not close credit card accounts until you know the full effect it could have on your credit score. In some circumstances, closing credit card accounts can negatively affect the credit report, which is something that should be avoided. It is also important to keep your major credit accounts active so that you do not lose a big portion of the credit history that you have built up over the years.
Credit cards often lure in new users with bonuses and gifts for signing up. However, that incredibly fine print listed in your contract could come back to bite you hard. Make sure you read and understand the terms and conditions of any bonuses. For example, you may need to spend a specific amount within a certain period of time in order to qualify for the bonus. Be sure that you’ll be able to meet the requirements before you let the bonus offer tempt you.
Check out the types of loyalty rewards and bonuses that a credit card company is offering. Find a perks or royalty program which suits your spending habits. This can really help you to afford the things you want and need, if you use the card and rewards with some level of care.
Never be scared to ask the credit card company to lower your interest rate. As long as you have a good credit history, you should be able to get yourself a much better rate. All you need is one phone call to help you get a better rate.
Do not buy anything online with a credit card until you are certain that it is a legitimate business. Check the site for a physical address of the business, and call any phone numbers listed to determine if they are actually working.
Try to keep your credit card accounts open for a long period of time. You do not want to switch to different accounts unless it is absolutely necessary. The length of time you have had accounts open is an important factor in calculating your credit score. Another element to establishing credit is to maintain and keep you credit accounts open and active at all times.
Don’t give credit card numbers out, online or over the telephone, without knowing that the company you’re dealing with is trustworthy. Be very suspicious of any offers that are unsolicited and request your credit card number. There are tons of scams that want your card number. Protect yourself by remaining diligent.
Verify all fees surrounding cards and don’t think of only annual percentage and interest rates. There are also charges like service charges, cash advance fees and application fees. These can make a card seem worthless if they cost too much.
Don’t pay for small purchases with credit cards, even if it’s tempting to do so. A lot of vendors require you to buy a certain amount of things before you can use your card, so you may end up buying things you do not really need. Keep credit expenditures above $10.
Read all fine print before applying for any secured card. Many secured credit card providers charge large fees which are taken from your security deposit. These fees can decrease your overall available credit.
If your credit card offers a frequent flier’s rewards program, take the time to completely understand the details. You must wade into the detailed terminology. You may be subject to blackout restrictions, rendering the rewards virtually unusable. Companies also want these restrictions to be tough to understand for their own reasons. The underlying truth is that they would prefer that you did not access the rewards you earn. They are just trying to get you to apply.
Don’t always pass over your debit card for a credit card just because it offers airline points and rewards. If you charge your purchases onto a single card just because you want free airline tickets, you could get them. Unfortunately, you’re also very likely to be forced to pay interest rate payments that end up costing you more than the plane tickets.
Immediately call the credit card company if you card is lost or stolen. The company can then block your credit card so that no unauthorized charges can be made to it. The company will then issue a new card to you.
Be sure that you’re making your payments each month on time. A late fee is imposed by most companies. The fee can range as high as $35, even if you’re just a day late in making a payment. If you make late payments more than once, you could see a regular rise in fees being charged.
Be aware of the dangerous allure of high credit limits. When you get a credit card, you should understand that you may have thousands of dollars at your fingertips. However, doing this could really mess up your finances. Rather than rushing to buy something, especially if it’s a large purchase, take a couple of days to think about it.
Be careful with cards that super-low teaser rates. While no-interest offers sound great, your interest rate and balance may rise significantly when the introductory rate period is over. Always know the balance related to any card that you decide to use.
Be wary of limited time interest-free offers. You might think you are receiving a great deal, while you ultimately end up spending more money than you planned.
If your credit card charges you a late fee, try calling and asking to have the fee dropped. If you are otherwise a good customer, and normally pay your bill on time, they are often willing to waive this fee.
When used carefully and thoughtfully, credit cards deliver unmatched benefits. Many people appreciate the flexibility and rewards that come with credit cards. Take the information that has been given to help you gain success with your cards.
