What do you think of when you hear the word credit? If you start to shake or cower in fear because of a bad experience, then this article is perfect for you. It contains many tips related to credit and credit cards, and can help you to break yourself of that fear!
If an item truly costs more than you have to spend, don't use a credit card to buy it. It's fine to use credit cards to stretch out the payments for an item you can afford, but refrain from making a major purchase that you couldn't afford otherwise.
Do not use your credit cards to make emergency purchases. Many people believe that this is the best use of credit cards, but the best use is actually for things that you purchase on a regular basis, like groceries. The key is, to only charge things that you will be able to pay back in a timely manner.
Many card issuers offer signing bonuses when you apply for a card. Be certain that you have a solid understanding of the terms, because in many cases, they must be strictly followed in order for you to receive your bonus. Typically, you are required to charge a certain amount on the card in a limited time period to get the bonus.
Keep a close eye on your balances. Make sure that you know of any credit limits that have been imposed by your creditor. If for some reason you exceed your limit, you will be liable for large fees that you might not know about. If you continue to go over your limit, you will have a difficult time paying down the balance.
When you are using your credit card at an ATM make sure that you swipe it and return it to a safe place as quickly as possible. There are many people that will look over your shoulder to try to see the information on the card and use it for fraudulent purposes.
Make note of alterations to the terms and conditions of your card. In today's age, credit card companies often change their conditions and terms more often than they used to. The most significant changes may be couched in legal terminology. Be sure to read through everything to see the changes that may affect you, like rate adjustments and additional fees.
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.
If you can't get a credit card because of a spotty credit record, then take heart. There are still some options that may be quite workable for you. A secured credit card is much easier to get and may help you rebuild your credit record very effectively. With a secured card, you deposit a set amount into a savings account with a bank or lending institution - often about 0. That amount becomes your collateral for the account, which makes the bank willing to work with you. You use the card as a normal credit card, keeping expenses under that limit. As you pay your monthly bills responsibly, the bank may decide to raise your limit and eventually convert the account to a traditional credit card.
Look into whether a balance transfer will benefit you. Yes, balance transfers can be very tempting. The rates and deferred interest often offered by credit card companies are typically substantial. But if it is a large sum of money you are considering transferring, then the high interest rate normally tacked onto the back end of the transfer may mean that you actually pay more over time than if you had kept your balance where it was. Do the math before jumping in.
Remember, interest rates can change quickly and are not negotiable. Credit card companies compete with each other for your business, and they all use a range of different rates to attract cusotmers. If you don't like your interest rate, make a call to the bank and talk to them about it.
It is highly recommended that your credit card limits remain less than 75% of the total money you make every month. If your limit is higher than one month's salary, work on reducing your balance immediately. The interest on that will soon be way over your head.
If you feel your interest rate is excessive on your credit card, ask the issuer to lower it. If they are unwilling to lower the rate, and you have been paying on time, look at other cards with a better rate. After you find it, transfer your debt to the new card.
You should ask the people at your bank if you can have an extra checkbook register, so that you can keep track of all of the purchases that you make with your credit card. Many people lose track and they assume their monthly statements are right and there is a huge chance that there may have been errors.
If you pay your credit card bill with a check each month, make sure you send that check out as soon as you get your bill so that you avoid any finance charges or late payment fees. This is good practice and will help you create a good payment history too.
Never fax credit card numbers. Many times a fax may sit for hours in a basket. This could allow many people unwanted access to your information. Any one of those people could unknowingly be a thief. Sending your information through a fax makes you at risk for identity theft.
How do you feel now? Are you still scared? If so, it is time to continue your credit education. If that fear has passed, pat yourself on the back. You have educated and prepared yourself in a responsible manner.
Orignal From: Which Credit Card Should You Get? Check Out This Information!
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