It’s important to use credit cards properly, so that you stay out of financial trouble, and boost your credit scores. If you don’t do these things, you’re risking a poor credit score, and the inability to rent an apartment, buy a house or get a new car. Read on for some tips about how to use credit cards.
Shop around for a card. Interest rates and terms can vary widely. There are also various types of cards. There are secured cards, cards that double as telephone calling cards, cards that let you either charge and pay later or they take out that charge from your account, and cards used only for charging catalog merchandise. Carefully look at the offers and know what you need.
Never give out your credit card number to anyone, unless you are the person that has initiated the transaction. If someone calls you on the phone asking for your card number in order to pay for anything, you should ask them to give you a way to contact them, so that you can arrange the payment at a better time.
Be smart with how you use your credit. Many people are in debt, due to taking on more credit than they can manage or else, they haven’t used their credit responsibly. Do not apply for any more cards unless you need to and do not charge any more than you can afford.
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!
Take advantage of the freebies offered by your credit card company. Many companies have some sort of cash back or points system that is attached to the card you own. When you use these things, you can receive cash or merchandise, just for using your card. If your card does not offer an incentive like this, call your credit card company and ask if it can be added.
Be sure to limit the number of credit cards you hold. Having too many credit cards with balances can do a lot of harm to your credit. Many people think they would only be given the amount of credit that is based on their earnings, but this is not true.
If you cannot afford to pay cash for something, think twice about charging it on your credit card. While it is fine to use them for items you may afford later, you should avoid using credit to purchase big ticket items that you are going to run into problems paying for.
Do not lend your credit card to anyone. Credit cards are as valuable as cash, and lending them out can get you into trouble. If you lend them out, the person might overspend, making you responsible for a large bill at the end of the month. Even if the person is worthy of your trust, it is better to keep your credit cards to yourself.
Sometimes cards are connected to all types of rewards accounts. You should find a rewards program that will benefit you for regular usage of your card. Over time, the perks add up and will give you some great additional income or discounts.
It goes without saying, perhaps, but always pay your credit cards on time. To be able to follow this simple rule, do not charge more than you afford to pay in cash. Credit card debt can quickly balloon out of control, especially, if the card carries a high interest rate. Otherwise, you will find that you cannot follow the simple rule of paying on time.
Keep the total number of credit cards you use to an absolute minimum. Carrying balances on multiple credit cards can complicate your life needlessly. Shift your debt onto the card with the lowest interest. You will be able to keep better track of your debts and pay them off faster if you stick with a single credit card.
If you have good credit, but still have credit cards with high interest rates, it is time to call the banks and negotiate lower rates. Often, they will agree. This will save you a significant amount of money each month on the balance you carry.
Credit card use is important. It isn’t hard to learn the basics of using credit cards properly, and reading this article goes a long way towards doing that. Congratulations, on having taken the first step towards getting your credit card use under control. Now you just need to start practicing the advice you just read.