There are a lot of great things about having a credit card. A credit card can help you purchase, reserve rental cars, and book tickets for transportation. How you manage your credit cards is important. This article will provide some beneficial tips that can help you select your credit card and manage it wisely.
When you cannot pay off one of your credit cards, the best policy is to contact the credit card company. Letting it just go to collections is bad for your credit score. You will find that most companies will let you pay it off in smaller amounts, as long as you don’t keep avoiding them.
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 you regularly purchase, like groceries. The key is only to charge things that you will be able to pay back promptly.
If possible, pay your credit cards in full every month. Use them for normal expenses, such as gasoline and groceries, and then pay off the balance at the end of the month. This will build your credit and help you gain rewards from your card without accruing interest or sending you into debt.
An important aspect of smart credit card usage is to pay the entire outstanding balance every month, whenever possible. Keeping your usage percentage low will help keep your overall credit score high and keep a substantial amount of available credit open for use in case of emergencies.
It is best to avoid charging holiday gifts and other holiday-related expenditures. If you can’t afford it, save to buy what you want or buy less-expensive gifts. Your best friends and relatives will understand that you are on a budget. You can always ask ahead of time for a limit on gift amounts or draw names. The bonus is that you won’t be spending the next year paying for this year’s Christmas!
If your card’s current interest rate does not please you, speak to your bank about lowering it. You may need to look for a card with a better rate if your bank doesn’t cooperate with your request. Try to switch over to that company when you find one right away.
If you cannot pay your entire credit card bill each month, you should keep your available credit limit above 50% after each billing cycle. Having a good credit to debt ratio is important for your credit score. Make sure that your credit card is not constantly near its limit.
Carefully review your monthly credit card statements. Try to find any discrepancies in your statement or any false charges. If you notice anything wrong, contact the credit card company as soon as possible. Your credit score may benefit you, and you can avoid overpaying.
To avoid excessive fees, always read the fine print of any credit card offer you are considering. Many offers come with a low introductory APR and can be quite enticing. However, further review of the fine print may reveal that that low rate will be increased to a less than appealing rate in as little as 6 months or a year.
Do not go on a spending spree just because you have a new card with a zero balance. This is not free money; it is money you will eventually have to pay back, and going overboard with your purchases will only end up hurting you in the long run.
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.
Don’t place your credit card number on anything visible to the public. This includes on the backs of postcards, on the outside of envelopes, and in publicly visible (and unsecured) areas of social media sites like Facebook, LinkedIn, and Twitter. Sharing your information on the mail or social media can lead to serious credit theft.
One little-known fact when dealing with credit card companies is that you have the power to negotiate your interest rates. Work with your credit card companies to lower your interest rates. You can probably get a lower APR by requesting it, presuming you have been a good customer who makes timely payments.
If you spend some time proving yourself responsible with secured credit cards, the card company may be ready to let you have an unsecured one. You may also find that you start receiving mail offers for credit cards. After thoroughly evaluating the situation, you will need to decide which cards are best suited for your use and circumstances.
Limit the number of active credit cards you have to avoid getting into debt. It’s much easier to manage your finances with fewer cards and limit excessive spending. Ignore all the offers you might be receiving, tempting you into getting more cards and letting your spending get too far out of control.
Before applying for a credit card, read all the fine print to avoid getting hooked into paying excessively high-interest rates. Many introductory offers are just ploys to get consumers to bite, and later, the company will show their true colors and start charging interest rates that you would never have signed up for had you known about them!
As was stated at the beginning of this article, having a credit card can benefit you. Making the best selection for obtaining a credit card is important, as is managing the card you choose accurately. This article has provided you with some useful tips to help you make the best credit card decision and grow your credit by using it wisely.
