In the modern world, having good credit is almost a necessity, but managing credit card debt presents some pitfalls. There are things to watch out for. Credit can be a great boon to a financial plan, but they can also be very dangerous. Continue on if you would like to know more tips on using credit cards.
Don’t use cards to buy something that you cannot afford. While it’s fine to use your card to purchase an item you can pay for later, it is not a good idea to purchase something you will have trouble paying down the line.
Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. The initial credit inquiry with the credit bureaus that a retail store makes to sign you up will end up on your credit report, whether or not you end up opening an account. If you have too many credit inquiries, your credit score may take a hit.
If you have the money to do so, pay your entire balance on your credit statement monthly. Ideally, credit cards are only for convenience and should be paid completely at the end of a billing cycle. Your credit score benefits from the credit card use, and you won’t have finance charges if paid in full.
Never leave a blank space when signing credit card receipts. Mark up the line for the tip, so that no one can later put an amount on it. Additionally, it’s a good idea to verify the information from all receipts with your monthly statement.
To avoid losing more money, confront your credit company about the opportunity for a lower interest rate. If you have a history with the credit card company and have been making payments on a timely basis, you might be able to ask for a better rate. A simple phone call may be all it takes in order to get a more competitive rate and save you money.
Keep an eye on your credit rating. A score of 700 is what credit companies feel the limit should be when they consider it a good credit score. Use your credit wisely to maintain that level, or if you are not there, to reach that level. If you can accomplish getting a score of seven hundred or more, you will get better rates on loans and charge cards.
If you are called and asked for the number of your credit card, refuse to divulge it. This is something most scammers do. Give out your number only if you are the one who made the call. Do not give them to people who call you. It does not matter who they say they are, you don’t know that they are being honest.
Make a list containing the account numbers of your credit cards and any phone numbers associated with your lenders. Leave it in a safe area and keep it separated from credit cards. You’ll be grateful for this list in the event that your cards get lost or stolen.
It is highly recommended that your credit card limits remain less than 75% of the total money you make every month. If your limit is higher than this amount, it’s best you pay it off immediately. This is due to the fact that the interest paid will soon snowball to a point that it’s out of your control.
Request a free credit report annually and check it for accuracy. Ensure that your credit report and annual statements match up.
Do not open and close charge cards frequently. You should avoid switching to different accounts, if possible. The amount of time that your account has been open will have an impact on your credit score. One component of building your credit is maintaining several open accounts if you can.
Frequently, consumers are left to their own devices when it comes to finances, and they often are victims of high interest rates on their credit cards. Use the tips here to avoid the pitfalls of using charge cards. Having good credit is important, and knowing how to handle a credit card is one of life’s challenges. You should be armed to handle it.