People today are bombarded with warnings about the dangers of credit cards, overspending and borrowing at high interest rates. If used the right way, charge cards can be very beneficial. Read this article to learn of the positive side of bank cards.
Always report any fraudulent charges that you notice on your credit cards as soon as possible. If you do this, your credit card company will have a good chance of tracking down the thief. Doing this also helps ensure that you will not have to pay for such charges. You can usually report fraudulent activity through a quick telephone call to your credit company.
If you have bank cards, make sure you have a budget determined. You should have a budget for your income, so include your credit in your budget. Never get into the habit of seeing charge cards as extra money. Set aside a certain amount that you’re willing to put on your credit card every month. Stick with it and each month, pay it off.
When it comes to your credit card, do not use a pin or password that is simple for others to figure out. You don’t want anyone who can go through your trash to easily figure out your code, so avoiding things like birthdays, middle names and your kids’ names is definitely wise.
Be cautious when you are using credit cards online. Before entering any of the information for your credit card, ensure that the website you are on is completely secure. Your credit information will remain safe if you are using a secure site. Also never respond to an email that asks you for a credit card number as this is likely fraudulent.
Maintain a contact list that includes issuer telephone information and account numbers. Have this information in a secure area, like a safe, and away from your actual cards. Having such a list will enable you to take quick action and have all the information handy, when it is needed.
Experts recommend that the limits on your bank cards shouldn’t be any more than 75% of what your monthly salary is. If your limit is higher than this amount, it’s best you pay it off immediately. Your interest will quickly become unpayable.
If your credit is damaged, consider applying for a secured credit card. A secured credit card require a balance for collateral. You basically borrow money from yourself, although you have to pay interest on the loan, too. If you’re using a credit card to boost your credit score, then a secured card is definitely the way to go. Always using a known company for secured credit. Down the road, you may even be able to switch to an unsecured (regular) credit card.
You can get a lot of benefit from using a credit card if you use it as part of your overall financial strategy and think about what you’re doing. From offering financial flexibility to repaying you with rewards, charge cards can be a helpful, enjoyable part of your life. Use your bank cards carefully for a more positive financial future.