Credit cards may be simple in principle, but they certainly can get complicated when it comes time to charging you, interest rates, hidden fees and so on! The following article will enlighten you to some very helpful ways that you can use your credit cards smartly and avoid the many problems that misusing them can cause.
If a fraudulent charge appears on the credit card, let the company know straightaway. Immediate action you take gives your credit card company an upper hand in catching the thief. Additionally, you will avoid being responsible for the charges themselves. Fraudulent charges could be reported through a phone call or through email to your card provider.
You should contact your creditor, if you know that you will not be able to pay your monthly bill on time. Many people do not let their credit card company know and end up paying very large fees. Some creditors will work with you, if you let them know the situation ahead of time and they may even end up waiving any late fees.
Avoid being the victim of credit card fraud by keeping your credit card safe at all times. Pay special attention to your card when you are using it at a store. Double check to make sure you have returned your card to your wallet or purse, when the purchase is finished.
If you have several credit cards with balances on each, consider transferring all of your balances to one, lower-interest credit card. Almost everyone gets mail from various banks offering low or even zero balance credit cards if you transfer your current balances. These lower interest rates usually last for 6 months or a year. You can save a lot of interest and have one lower payment each month!
Whenever you are considering a new credit card, you should always avoid applying for credit cards that have high interest rates. While interest rates compounded annually may not seem all that much, it is important to note that this interest can add up, and add up fast. Make sure you get a card with reasonable interest rates.
If you are determined to stop using credit cards, cutting them up is not necessarily the best way to do it. Just because the card is gone doesn’t mean the account is no longer open. If you get desperate, you may ask for a new card to use on that account, and get trapped in the same cycle of charging you wanted to get out of in the first place!
Credit Cards
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 need to use credit cards, it is best to use one credit card with a larger balance, than 2, or 3 with lower balances. The more credit cards you own, the lower your credit score will be. Use one card, and pay the payments on time to keep your credit score healthy!
Many credit cards offer loyalty programs. If you use credit cards on a regular basis, it is wise to find one with a loyalty or rewards program that you find personally useful. This can actually provide a lot of benefits, if you use it wisely.
Remember not to have credit cards sent to your mail if you don’t have locks on your mailbox. It is a known fact that criminals will target mailboxes that are not locked to steal credit cards.
Remember that you must pay back what you have charged on your credit cards. This is only a loan, and in many cases, it is a high interest loan. Carefully consider your purchases prior to charging them, to be sure that you will have the money to pay them off.
A great way to save money on credit cards is to spend the time necessary to comparison shop for cards that offer the most advantageous terms. If you have a decent credit history, it is highly likely that you can obtain cards with no annual fee, low interest rates and perhaps, even incentives such as airline miles.
Shop around for different credit cards. Interest rates and other terms tend to vary greatly. There are also various types of cards, such as cards that are secured which require a deposit to cover charges that are made. Make sure you know what kind of card you are signing up for, and what you’re being offered.
Hopefully, this article has opened your eyes as a consumer who wishes to use credit cards with wisdom. Your financial well-being is a crucial part of your happiness and your ability to plan for the future. Keep the tips that you have read here in mind for later use, so that you can stay in the green, when it comes to credit card usage!
