Easy Tips To Help You Effectively Deal With Credit Cards
Too many people run into financial trouble because they do not make the best use of credit. Is this the case with you? If you're taking the time to read this article, that means you want to turn over a new leaf and get back on the road to good credit.
If you are in the market for a secured credit card, it is very important that you pay close attention to the fees that are associated with the account, as well as, whether they report to the major credit bureaus. If they do not report, then it is no use having that specific card.
Shred old credit card receipts and statements. You can easily purchase an inexpensive home office shredder to handle this task. Those receipts and statements, often contain your credit card number, and if a dumpster diver happened to get hold of that number, they could use your card without your knowledge.
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.
It is good credit card practice to pay your full balance at the end of each month. This will force you to charge only what you can afford, and reduces the amount of interest you carry from month to month which can add up to some major savings down the line.
Try not to use credit cards for everyday purchases such as groceries, gas, and clothing. These are things you will most likely need again, before you can pay the balance off. You will end up with a pile of credit card debt that will keep on growing. When you need these types of items, leave your credit cards at home.
Establish some kind of method to keep track of just how much money you are spending on your credit card. Write down each charge in a notebook or enter the charges into an app on your smart phone. No matter which type of method you choose, keeping a record of your transactions helps you not to overcharge with impulse and incidental purchases, which have a tendency to add up quickly.
If you get into trouble, and cannot pay your credit card bill on time, the last thing you want to do is to just ignore it. Call your credit card company immediately, and explain the issue to them. They may be able to help put you on a repayment plan, delay your due date, or work with you in ways that won't be as damaging to your credit.
The credit card that you use to make purchases is very important and you should try to use one that has a very small limit. This is good because it will limit the amount of funds that a thief will have access to.
If have a missing or stolen credit card, report it as soon as possible to the card issuers. Several companies have a 24-hour service and toll free number on their statement for this reason. To protect yourself, after calling, write a letter to every issuer. The letter should provide your card's number, the date it went missing, and the date it was reported.
If your credit history is bad, or you have no credit history, consider applying for a secured credit card account. These accounts have limits, and are often linked to the person's bank account to guarantee card payments. Prompt payments on your balance look excellent on your credit record and will improve or establish credit.
As stated previously, credit cards can be quite useful, but they can also hurt us when we don't use them right. Hopefully, this article has given you some sensible advice and useful tips on the best way to use your credit cards and manage your financial future, with as few mistakes as possible!
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