Credit cards are a ubiquitous part of most people's financial picture. While they can certainly be extremely useful, they can also pose serious risk, if not used properly. Let the ideas in this article play a major role in your daily financial decisions, and you will be on your way to building a strong financial foundation.
Before you choose a credit card company, be sure that you compare interest rates. There is no standard when it comes to interest rates, even when it is based on your credit. Every company uses a different formula to figure what interest rate to charge. Be sure that you compare rates, to ensure that you get the best deal possible.
When it comes to credit cards, always try to spend no more than you can pay off at the end of each billing cycle. By doing this, you can help to avoid high interest rates, late fees and other such financial pitfalls. This is also a great way to keep your credit score high.
If you have two to three credit cards, it's a great practice to maintain them well. This will help you build one's credit score, particularly if you pay your bill in full. However, if you open more than three, it may not look good to a lender when they pull your credit bureau report.
You should always try to negotiate the interest rates on your credit cards instead of agreeing to any amount that is always set. If you get a lot of offers in the mail from other companies, you can use them in your negotiations, to try to get a much better deal.
Take advantage of the fact that you can get a free credit report yearly from three separate agencies. Make sure to get all three of them, so that you can be sure there is nothing going on with your credit cards that you may have missed. There may be something reflected on one that was not on the others.
Before you decide on a new credit card, be careful to read the fine print. Credit card companies have been in business for many years now, and know of ways to make more money at your expense. Be sure to read the contract in full, before signing to be sure that you are not agreeing to something that will harm you in the future.
Do not use your credit cards to pay for gas, clothes or groceries. You will find that some gas stations will charge more for the gas, if you choose to pay with a credit card. It's also not a good idea to use cards for these items because these items are things you need often. Using your cards to pay for them can get you into a bad habit.
If you get into trouble, and cannot pay your credit card bill on time, the last thing you want to do is to just ignore it. Call your credit card company immediately, and explain the issue to them. They may be able to help put you on a repayment plan, delay your due date, or work with you in ways that won't be as damaging to your credit.
If you get to a point where you are having a difficult time making the monthly payment on a credit card, then you should destroy the card so that you will not be tempted to use it again. You can still pay it off without having the card in your possession.
If you have more than one credit card, it is wise to pay at least one off each month. Even if you are carrying significant debt on other cards, maintaining an active card that you pay in full every month will help you build a better credit history.
Pick one credit card with the best rewards program, and designate it to regular use. This card can be used to pay for gas, groceries, dining out, and shopping. Be sure to pay it off each month. Designate another card for charges like, vacations for the family to be sure you do not overdo it on the other card.
Remember to keep only essential credit cards in your wallet. You might have multiple cards, but you should only carry the ones you use regularly. This may be a gas card or daily charge card. Carry those two cards on a daily basis, and keep the rest in a safe place at home.
Consider closing unused credit card accounts. If you keep them open, it is all to easy to fall victim to identity theft. You could also be charged annual fees for keeping a credit card account open that you no longer need or use.
Check your card transactions frequently for false charges. Signing up for text or email alerts can be a great way to accomplish this. If anything questionable activity arises, you can be aware of it instantly. If you ever see something that looks suspicious, don't be afraid to put a call in to your lender or even the local police.
Even if you cannot make your minimum monthly payment on a credit card, you should pay something. No matter how modest the amount, this will tell your credit card company that you are trying to deal fairly with them. If your problems continue, you will find your company more inclined to work with you if you have been making at least some payments.
If one of your credit cards has lower interest than another, you can utilize that card to pay off the other credit card. Even if interest rates are not appreciably better, some credit cards offer rewards with a value toward vacation travel and hotels. Just make sure you do the math on paper before transferring any balances.
Just about everyone has used a credit card at some point in their life. The impact that this fact has had on an individual's overall financial picture, likely depends on the manner in which they utilized this financial tool. By using the tips in this piece, it is possible to maximize the positive that credit cards represent and minimize their danger.
Orignal From: Great Tips For Managing Your Credit Cards
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