There are lots of horror stories associated with the debt that can accompany charge cards. However, when credit is used responsibly, it offers peace of mind, convenience and even rewards and perks. Read on to learn how you can use charge cards in a positive manner.
After you have cancelled an account, completely destroy any associated cards. If you choose to put it in a drawer, the card could find itself in another person’s hands, and he or she could use your information to open up your account and charge lots of debt that is in your name.
If your mailbox does not contain a lock, do not order cards through the mail. Credit card thieves have admitted to taking cards out of mailboxes that were unlocked.
Use them so you don’t lose them. Many creditors will close an account if it is inactive for a long time. The best way to ensure your account stays open for when you need it is to use a card occasionally. Remember, paying in a timely manner will avoid debt and higher interest rates.
Remember to pay your credit card on time every month. Just one late payment can leave a ding on your credit report, cost you a late fee, and cause your interest rate to skyrocket. Try paying online, so that you don’t have to worry about something happening to your payment in the mail.
If you make your payments on time, but feel your interest rate is too high, talk to your credit card company to negotiate. Just make a simple phone call and request that your rate be lowered. In many instances, they will do this to retain your business.
It is wise to thoroughly go over each credit card statement each month. Check–and double check–every new charge that appears on your statement. If you notice problems with the charges or the amounts charged, get in touch with your card issuer right away. If you initiate any complaints or disputes when they happen, they are much easier to get resolved.
If you only pay the minimum amount each month on your credit card, only the credit card company benefits. The monthly minimums are deliberately designed to be so low that you will be paying for years in in order to pay off your balance. In the meantime, the credit card company will be collecting inordinate amounts of interest from you. Always try to make payments larger than the stated minimum. Don’t get stuck paying high interest.
Limited interested fees aren’t always wise to choose when picking a credit card. It may appear to be a great deal at first, but you may quickly learn that it was a huge financial mistake costing you a great deal of money.
Review your monthly statements carefully. Try to complete this on a regular basis. Waiting too long increases your chances of forgetting transactions. Another consequence of waiting too long is that you might not be able to fix the problem if you do find one.
Understand that it is a privilege to use a credit card, not a right. Your good credit is enhanced by responsible credit card use and is hurt when you use it unwisely. A person who is responsible with their credit card accounts makes the payments when due each month and tracks charges.
Convenience might tempt you to use a credit card for everything, but it is better to pay for small purchases with cash. A lot of vendors require you to buy a certain amount of things before you can use your card, so you may end up buying things you do not really need. Only use credit for purchases of more than $10.
As you can see from the above tips and techniques, credit cards offer a myriad of benefits. You can improve your quality of life by having funds available for emergencies or earning rewards. You can have these benefits by using what this article has taught you