Having a credit card could be a lifesaver when you are in a financial bind. Are you lacking in cash, but need to make a purchase? No problem! A credit card can make these types of purchases easier. Do you want a better credit score? Using a credit card makes this easy. Continue reading to find out other ways to make use of a credit card.
Don’t purchase things with credit cards that you know you cannot afford, no matter what your credit limit may be. Though you may want to use a card to make a purchase that you are certain you can repay down the road, it is not smart to buy something that you clearly cannot easily afford.
Ensure you understand how closing an account will affect your credit score. It is possible to negatively impact your credit report by closing cards. It is also best to keep your oldest cards open as they show that you have a long credit history.
If you have credit cards, make sure you have a budget determined. You should already have created an income budget, so include credit cards in that budget. Never get into the habit of seeing bank cards as extra money. Know how much you have allotted each month and keep a close eye on your spending to ensure you stick to it. Don’t deviate from spending that amount, and aim to pay off the entire amount every month.
If you have not established a credit history and are interested in obtaining a credit card, it may help to obtain a co-signer. Anyone with established credit can be a co-signer. They are required to state their willingness to assume responsibility for outstanding balances if you fail to pay. Doing so is a good way to start building credit.
Be sure to study your credit card terms closely prior to making your first purchase. Legally, using your card for the first time will probably mean that you accept the terms spelled out in that agreement. The print might be tiny, but you need to carefully review it.
Always make timely credit card payments. Not making your credit card payment by the date it is due can result in high charges being applied. Card companies will give you a higher interest rate as well, increasing the cost of purchases made in the future.
You should never jot down your password or pin number, regardless of the circumstances. You need to remember your password without writing it down so that other people can’t access it. If you have the pin number written down and near your credit card, that makes it super easy to steal.
Don’t give into someone else wanting to borrow your bank cards. It could be a very good friend that is in need of one thing or another, but it is not a very good idea to lend it out. It can lead to over-limit charges if your friend should put more on the card than you had authorized them to.
Watch your own credit score. The benchmark score which is considered good by lenders is 700 or above. Improve your spending habits by spending to improve your credit score. When you have a score that is around 700, or even higher, then you can get good credit offers that have minimal rates.
If someone calls you up and asks you for credit card information out of the blue, don’t give it out. It is always a mistake to give out your confidential information to anyone over the telephone as they are probably scammers. Only provide your number to businesses you trust, along with your card company if you call about your account. Never give your number to random people who call your home. It doesn’t matter who they say they are if you don’t know the person.
Now you know of the many ways a credit card can be used. This includes simple things like paying for products or even paying off bills. Use this article’s information cautiously when charging items to your credit card.