Credit cards are useful because they allow people to purchase items without having to instantly pay for them. Before you do get a card and begin spending with it, you have to know a little bit about credit cards so you don’t end up in too much debt. The tips in this article will give you some excellent information on good credit practices.
If you lose your job, let the card company know. If you’re likely to miss a payment, you want them to know so they can work with you, which they usually do. Doing so could help you avoid being reported to major reporting agencies for the late payment.
Don’t use passwords and pin codes on your credit cards that can easily be figured out. Information like birth dates or middle names make terrible passwords because they can be easily figured out.
As a general rule, you should avoid applying for any credit cards that come with any type of free offer. More often than not, anything that you get free with credit card applications will always come with some sort of catch or hidden costs that you are sure to regret later on down the road.
If you are determined to stop using credit cards, cutting them up is not necessarily the best way to do it. Just because the card is gone doesn’t mean the account is no longer open. If you get desperate, you may ask for a new card to use on that account, and get trapped in the same cycle of charging you wanted to get out of in the first place!
Don’t make a written record of your credit card’s PIN or password. Memorize your password, and never share it with anyone else. Writing your pin down and placing it in a similar area where you place your card is not a good thing to do.
Many companies advertise that you can transfer balances over to them and carry a lower interest rate. This sounds appealing, but you need to carefully consider your options. Think about it. If a company consolidates a higher amount of money onto one card and then the interest rate spikes, you are going to have a hard time making that payment. Know all the terms and conditions, and be careful.
Almost everyone’s been through it. Company after company sends you information about their fantastic credit card, week after week. There may be times when you want to get one, but not all the time. Don’t just throw this mail away, shred or rip it up. Never just throw it in the trash can, because sometimes such offers include personal data.
You may want to consider using layaway, instead of credit cards during the holiday season. Credit cards traditionally, will cause you to incur a higher expense than layaway fees. This way, you will only spend what you can actually afford during the holidays. Making interest payments over a year on your holiday shopping will end up costing you far more than you may realize.
Find a credit card that rewards you for your spending. Spend money on the card that you would need to spend anyway, such as gas, groceries and even, utility bills. Pay this card off each month as you would those bills, but you get to keep the rewards as a bonus.
Try to reduce your interest rate. Call your credit card company, and request that this be done. Before you call, be sure you know how long you have had the credit card, your overall payment record, and your credit score. If all of these show positively on you as a good customer, then use them as leverage to get that rate lowered.
There are so many cards available that you should avoid signing up with any company that charges you a monthly fee just for having the card. This will end up being very costly and might end up making you owe much more money to the company, than you can comfortably afford.
Never make the mistake of not paying credit card payments, because you can’t afford them. Any payment is better than nothing, that shows you truly want to make good on your debt. Not to mention that delinquent debt can end up in collections, where you will incur extra finance charges. This can also ruin your credit for years to come!
Read all the fine print before applying for a credit card, to avoid getting hooked into paying excessively high interest rates. Many introductory offers are just ploys to get consumers to bite and later, the company will show their true colors and start charging interest rates that you never would have signed up for, had you known about them!
If your credit card company offers to raise your spending allowance, think carefully before you accept. A higher spending allowance on your cards raises your possible debt to income ratio, and that can harm your credit score. If you do not need the higher spending allowance, ask your creditor to keep your balance where it is, instead.
If you are looking for one of your credit card accounts to close, do not make it your oldest card. The longer you have a solid credit card on your report, the better it looks on your report and gives you a better score. If you are considering it because of high interest rates, contact your creditor and request a reduction in interest rates.
Pay your credit card bill on time every month. A late fee is normally charged if the payment is not received by the due date. Your fee could possibly be as large as $25, even just being one day late. Fees might increase each time you are late.
Always leave one account open at the very least. This should be used to build up positive credit. Choose the card with the most longevity and history. Lenders will see that you have good account management skills.
When used properly, credit cards are quite useful. This article’s advice will assist you in properly using your credit card, while avoiding debt and keeping an ideal credit score.