You can build your credit rating and manage your finances by using charge cards wisely. Knowing how the card works and the laws that govern it will ensure consumers make smart choices. The following article discusses some of the best basic credit card information for consumers.
Don’t make a written record of your credit card’s PIN or password. Make sure you know your password so you ensure that only you have access to it. If you document your pin number, and keep it with your card, anyone can use it.
Some people try not to get credit cards so it will look like they are not in debt. It is important, though, to have at least a single card in order to build a credit history. When you use it, pay for it! By having no credit, you will lower your credit score and prospective lenders will not be able to determine that you know how to manage debt.
Those of you looking to get a new credit card should limit their search to cards that have low interest rates and do not have an annual fee. Since so many cards do not charge an annual fee, it is a waste of your money to pay annual fees.
When looking for a secured card, you should avoid prepaid cards. These are considered debit cards so they don’t report to any of the credit bureaus. Oftentimes, there are extra fees charges for this. Apply for a true secured card that reports to the three major bureaus. This will require a deposit, though.
Calling the company to report a missing credit card should be your first priority when you lose one. If a thief uses your card prior to the theft being reported, you might end up paying for whatever they purchased. When you report your credit card as missing, your card company can’t hold you accountable for any charges you did not make.
If you are called and asked for the number of your credit card, refuse to divulge it. Many scammers will use this ploy. Only share your credit card number with trusted businesses and with the company that owns the credit card. Don’t give them to individuals who call you. It does not who they say they are, you still are not fully aware of who might be on the other end.
If you don’t want to lose a credit card, be sure to use it once in awhile. Many creditors keep inactive accounts open for only a limited time. If you want to keep a card, use it every few months for a small purchase. In addition, remember to pay them off each month so you remain debt-free.
As was stated in the beginning of this article, bank cards can benefit individual’s as they work to build their credit and take charge of their money. Fully understanding the terms and conditions of various credit cards is the best way to make an educated choice when selecting a credit card provider. Once you understand the fundamentals of a credit card, then you can make better informed decisions.