When selecting and using a credit card, a bit of consumer advice can come in handy. This article was written to teach you about the proper way to use credit cards. Consider that many individuals have cards and do not understand how to handle them correctly, this is how financial problems begin.
Do not close credit card accounts until you understand the impact it may have. In some circumstances, closing credit card accounts can negatively affect the credit report, which is something that should be avoided. Also, be sure that you keep a few cards open that are responsible for most of your history, credit wise.
Speak with the credit card company right after you see a charge on your statement that you did not make. Taking immediate action gives you the highest probability of stopping the charges and catching the culprit. Doing this also helps ensure that you will not have to pay for such charges. A simple phone call is usually all it takes to report fraudulent charges or put a hold on a stolen card.
Do not bother with retail credit cards unless you have a serious intent to shop at a given store on a regular basis. When stores submit an inquiry into your credit history for a card, this gets reported on your credit report whether or not you ultimately get the card. An excessive amount of inquiries from retail stores on your credit report can actually lower your credit score.
Don’t automatically run out and get a bit of plastic as soon as you are of age. It takes a couple of months of learning before you can fully understand the responsibilities involved in owning bank cards. Get used to your responsibilities as an adult prior to dealing with a credit card.
Many bank cards offer loyalty programs. You should find a rewards program that will benefit you for regular usage of your card. When used wisely, they can save you a great deal or even offer you an additional source of income.
The moment you receive a letter or email regarding your credit card, be sure to read it right then. Credit card companies can add or change fees, interest rates, and annual fees if they provide you with a written notice of such changes. If you don’t agree with their changes, it’s your decision if you want to cancel your credit card.
When developing a PIN or a password, make it one that is hard to make any sort of guess about. It’s a bad idea to use a common password like a middle name or phone number since people could guess these.
Don’t use credit cards to buy items that are too expensive for you to afford. A credit card isn’t the magical solution to getting the flat screen TV or new computer that you have always wanted. If you can’t pay off the balance right of way, you will risk not being able to make your monthly payments and owing quite a bit of interest. Exit the store and mull over your purchase for a couple of days before making your final decision. Then, if you decide to purchase it, you may be able to get low interest rates through in-house financing.
Leave no blanks spaces on any credit card receipts you sign at a store. If there is a tip line and you are not charging your gratuity, mark a line across the area to ensure nobody adds in an unauthorized amount. Also, check your statements to make sure that your purchases match what is on your statement.
As you have seen, it can be all too easy to cause problems for yourself by using bank cards improperly. If you spend too much on too many cards, you will be in a tight spot. This article should, hopefully, teach you some ways to avoid the trouble that can find you regarding credit cards, so you can remain financially healthy.