Credit cards offer many benefits to the user, provided they practice smart spending habits! Too often, consumers find themselves in financial trouble after inappropriate credit card use. If only we had that great advice before they were issued to us! The following article will offer you that advice, and more.
Before closing any credit card, understand the impact it will have on your credit score. Many times, closing an account leaves a negative mark on your credit record, and should be avoided, even if you do not plan to ever use the account again. Also, keep open all the accounts that make up most of your history.
Emergency, business or travel purposes, is all that a credit card should really be used for. You want to keep credit open for the times when you need it most, not when purchasing luxury items. You never know when an emergency will crop up, so it is best that you are prepared.
Carefully consider those cards that offer you a zero percent interest rate. It may seem very alluring at first, but you may find later that you will have to pay sky high rates down the road. Learn how long that rate is going to last and what the go-to rate will be when it expires.
It may not be in your best interest to get your first credit card the moment you become old enough to do so. It takes a couple of months of learning before you can fully understand the responsibilities involved in owning credit cards. Before getting credit cards, give yourself a couple of months to learn to live a financially responsible lifestyle.
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
Do not use credit cards to purchase things you could not afford. You might want a flat-screen television, but that doesn't mean that you should use your credit card to buy it. If you can't pay off the balance right of way, you will risk not being able to make your monthly payments and owing quite a bit of interest. Leave before buying anything, think it through and then return if you want to buy it. Normally, the store itself has lower interest than credit cards.
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.
If you ever get a phone call that asks for a credit card number, you should never give out that information. Credit card thieves often contact people by telephone. Give your number only to trusted companies and to your credit lender when you contact them. If a random company calls you first, don't share your numbers. Regardless of who they say they are, you cannot be sure.
It is a good idea to avoid walking around with any credit cards on you that already have a balance. If the card balance is zero or very close to it, then that is a better idea. Walking around with a card with a large balance will only tempt you to use it and make things worse.
Request a free credit report annually and check it for accuracy. Match up your credit card debt on your report with your statements and make sure that they match up.
Know what recent credit card laws have been created recently. For example, it's now illegal for a credit card company to retroactively increase rates. They are not allowed to operate on double-cycle billing schedules either. Study all relevant laws. Two primary changes that have occurred in recent years involve the Fair Credit Billing Act and the CARD Act.
Do not fax your credit card number to anyone. Not all fax machines are located in secure locations, so you have no idea who could read the fax and note down your credit card details. A lot of people will have access to stealing this number. Although many credit cards will cover the costs associated with fraudulent use, it can take time to resolve.
Shred old credit card receipts and statements. You can easily purchase an inexpensive home office shredder to handle this task. Those receipts and statements, often contain your credit card number, and if a dumpster diver happened to get hold of that number, they could use your card without your knowledge.
Take advantage of security features that your credit card company might offer. These might include things like adding your picture to your credit card. This is an additional step that merchants can use to verify that you are the person using the card, allowing them to help you keep your card safe from criminal activity.
Try and negotiate the interest rates of your credit card. In many cases, you may be able to successfully negotiate a lower rate with your creditor. You can probably get a low APR if you have good credit and have been making all of your payments on a timely manner.
As stated earlier, it's just so easy to get into financial hot water when you do not use your credit cards wisely or if you have too many of them at your disposal. Hopefully, you have found this article very useful in your search for consumer credit card information and helpful tips!
Orignal From: Particularly Helpful Info For Credit Card Consumers
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