Today, consumers need as much advice as possible when it comes to managing finances and avoiding pitfalls caused by overspending. Although credit cards are quite useful, they could also cause you debt. Read on to learn how to properly utilize your credit cards.
Know the difference between an actual due date on your credit card bill, and what is called a suggested date. Companies are beginning to suggest that customers pay their bills over two weeks before the actual due date. If your statement offers a suggested date, it can help you to know what the actual due date is, just in case you’ll need some extra time to make a payment.
Do not get a rewards credit card unless you have already shown you can handle credit responsibly. In order to receive the benefits offered by rewards cards, you have to use them a great deal every month. It is all too easy to rack up unwieldy debts in this situation. Your first credit card should be simple with a low limit, low interest and no rewards points.
If you resort to paying off a credit bill using a credit card, be sure the one you pay off first has the higher fees and rates. This can also benefit you when it comes to loyalty programs or other credit perks. Do the math carefully, as any mistakes could cost you.
Carry only those credit cards you will actually need with you every day. While it may be tempting to stuff all of your five or six cards into your wallet, stop and select the cards you actually use on a regular basis. Such cards may be a general purpose card and a gasoline card. Carry those two cards on a daily basis, and keep the rest in a safe place at home.
A smart move for all card users is to get free credit reports annually and check them for accuracy. Check your credit report against your own account statements to ensure that they align.
If you’re a student looking for a credit card, be mindful of the fees and costs of any card you choose to apply for. Many card companies tack on additional penalties and/or fees of an annual nature on student credit cards, making it important for you to research each card to locate the best one for you.
Always make sure you’re paying the cards you have with the largest interest rates first. Never keep a large balance on a card that has a high interest rate since this will cost you hundreds of dollars a year. It is essential to pay off your higher interest rate cards before you pay low interest cards.
At all costs, avoid using a credit card to buy casino chips or take cash out of the ATM machine. Credit card companies often charge high fees for gambling transactions and cash advances. Only use them in these types of situations if it is absolutely necessary.
Be sure to send your credit card payment in on time each month. If you miss just one payment, your interest rate may be raised. Also, if you have a late payment or miss one, it will show up on your credit score, which will lower it overall. Think about using your bank’s bill-pay app to auto-debit your credit card bill. This will help you make absolutely sure that you pay it on time.
Only keep cards active that you choose to use. This makes accounting for your purchases and keeping track of their location much easier. Then if your wallet is lost or stolen, you know exactly which credit cards are missing. If you do lose a card, contact your credit card issuer as soon as possible to report it missing.
As said in the beginning, the ups and downs of the financial world can be confusing to consumers. Ideally, you have picked up some handy spending advice from this article and have a better idea about how to use your credit cards in a safe and responsible manner