Although they are not going to completely supplant cash money anytime soon, credit cards are a vital part of personal finance and will certainly remain so in the future. With the amount that banks are charging for normal accounts and debit cards, more people have been using their credit cards to make financial transactions. Read the following article to learn how you can wisely use credit cards.
One way to stop yourself from using a credit card on a whim is to position them behind your bank cards in your purse or wallet. That way, even if you are rushed or focusing on something else, you will probably use a debit card rather than charging something accidentally.
If you are searching for a new card, you should limit your search to the cards with low rates and with no annual fee. With so many cards out there that don’t require an annual fee, getting one with an annual fee is simply a waste of money.
Only use credit cards when necessary. Use your debit card instead whenever you can. It’s best to use credit cards only for large purchases like computers. But if you are going out for groceries, using your debit card is best. You will save a lot of money this way.
Most analysts state that a credit limit should be no greater than 75% of a monthly salary. If you have a limit higher than a month’s salary, you should work on paying it off immediately. Interest can easily grow to very large amounts that are difficult to pay off. So, pay off the accounts with the higher limits to avoid becoming overwhelmed.
Keep a close eye on transactions made with your credit card. Ideally, you should sign up for text alerts if they are offered by your credit card company. If anything questionable activity arises, you can be aware of it instantly. If you do see any unauthorized activity, contact the card issuer immediately. You may even have to notify the police.
Report any fraudulent charges on your credit cards as soon as you see them. By doing this, you can help your credit card company catch the thief who is making these unauthorized charges. This will help ensure you are not liable for any fraudulent charges against the card. If you suspect fraudulent charges, immediately notify the company your credit card is through.
If you are carrying a high balance on your credit card, do all you can to lower it. Having high balances on various cards can make it difficult to get credit for other purposes. If your credit becomes damages it may be hard to get a job, rent an apartment, get insurance or finance a car.
If someone calls requesting your card number, don’t give it to them. Many scammers will use this ploy. Only give you credit card information out to trusted companies you have contacted. Never give your credit information to someone that has called you. Credit card thieves will say anything to get you to believe their story, and they are very good at it.
Always pay your credit card bill on time every single month. Even if you are only late once, you can be presented with an increased interest rate, exorbitant fees and a poor credit rating. When you make your payment online, it eliminates concerns that your check will get lost in the mail.
Leave no blank space or room for anyone to write anything when you sign a credit card receipt. Draw a pen line through the “tip” area, so that an employee cannot write something in the space and give themselves a tip. Make sure your statements match the charges you make.
Understand the current laws that apply to credit cards that have changed in the past few years. Credit card issuers may not assess retroactive interest rate hikes, as an example. They are also never allowed to double-cycle their billing practices. Research the relevant laws. The two important laws that have come into effect recently are the CARD Act as well as the Fair Credt Billing Act.
Try avoiding paying for your restaurant bills on your card since it will take a while to show up and shock you a few days later. That may cause you to spend greater sums of money, because you had the impression that more credit was available to you.
Pay all of your credit cards when they are due. There is always a due date for your monthly card payment, and neglecting the date will result in costly late charges. In addition, most credit card companies will raise your interest rate, meaning all of your future purchases will cost you more.
Call your card company immediately if you lose your card. Your credit card company can cancel your card immediately so that others can’t try to charge things to it. The company will also assign you a new account number and provide you with a new card.
It is important to keep your credit card accounts open for as long as possible, these are not short-term financial options. Frequent switches to new companies is not wise unless you find it absolutely necessary. A long account history has a positive effect on your credit score. You must keep an account open to build credit.
Never make purchases with your credit card, that you cannot afford. If you want a big ticket item you should not necessarily put that purchase on your credit card. You will end up paying more for the product than it is worth! Walk out of the store, think about it for a few days, and then arrive at a final decision. If you do decide to make the purchase, see if the store offers financing that is usually lower interest than your credit card.
Credit cards have become the preferred payment method for people that do not like the charges and regulations that are imposed on debit cards. You can also use the benefits that credit cards offer thanks to its increased use. Just use everything about credit cards that you’ve learned here.