Consumer advice is a commodity itself these days
especially when it comes to credit cards. The below article can provide you with knowledge in how to properly use credit cards so that you can avoid any problems. A lot of people now own more credit cards than necessary and this can make spending responsibility more difficult.
When making purchases with your credit cards you should stick to buying items that you need instead of buying those that you want. Buying luxury items with credit cards is one of the easiest ways to get into debt. If it is something that you can live without you should avoid charging it.
If you have credit cards be sure to check your monthly statements thoroughly for errors. Everyone makes errors, and this applies to credit card companies as well. To prevent from paying for something you did not purchase you should save your receipts through the month and then compare them to your statement.
Make sure that you make your payments on time when you have a credit card. The extra fees are where the credit card companies get you. It is very important to make sure you pay on time to avoid those costly fees. This will also reflect positively on your credit report.
The reason credit card companies have minimum payments is because this is the amount they would like you to pay so they get the most money out of you over a longer period of time. To help decrease the length of time it takes to pay of your unpaid balance, pay at least 10 percent more than what is due. Paying off your balance faster helps you avoid expensive finance charges over the life of your debt.
Don’t pay any fees upfront when you are getting a credit card
The legitimate card issuers will not ask for any money up front, unless you’re getting a secured credit card. When you are applying for a secured card, be sure to find out how the deposit is going to be used.
A great way to keep your revolving credit card payments manageable is to shop around for the most advantageous rates. By seeking low interest offers for new cards or negotiating lower rates with your existing card providers, you have the ability to realize substantial savings, each and every year.
Sign credit cards as soon as you receive them. Many people don’t do that, their cards get stolen, and cashiers do not realize the theft. The signature on the back offers protection against fraudulent purchases because the cashier verifies that the customer’s signature matches the signature on the card.
It is good credit card practice to pay your full balance at the end of each month. This will force you to charge only what you can afford, and reduces the amount of interest you carry from month to month which can add up to some major savings down the line.
You need to pay more than the minimum payment each month
If you aren’t paying more than the minimum payment you will never be able to pay down your credit card debt. If you have an emergency, then you could end up using all your available credit. So, each month try to send in a little extra money in order to pay down the debt.
If you get a call asking for your credit card number, do not give it out. Many dishonest people use this ploy to get credit card information from unsuspecting people. Only give you credit card information out to trusted companies you have contacted. Never provide this number to someone who calls you. No matter what or who they might claim to be, there is no way for you to know who you are talking to.
If you can, do not use your credit card at the grocery store or a restaurant. They take longer to appear on a statement, and you may not know your real available balance. This could cause you to overspend because you are not aware of how high your balance is.
It is often possible to receive an unsecured card after maintaining a sound record with a secured card for awhile. You will also start to receive offers in the mail. You will now need to re-assess your circumstances before deciding what to do next.
Never make the mistake of not paying credit card payments, because you can’t afford them. Any payment is better than nothing, that shows you truly want to make good on your debt. Not to mention that delinquent debt can end up in collections, where you will incur extra finance charges. This can also ruin your credit for years to come!
As you have seen, it can be all too easy to cause problems for yourself by using credit cards improperly. Having too many cards and making too many purchases can lead to disaster. It is hoped that the advice in this article can help prevent credit card issues for you and help you remain financially healthy.