Don’t Know Much About Credit Cards? Read This

TIP! Keep track of your purchases made by credit card to make sure that you do not spend more than you can afford. It is easy to loose track of the money you spend when you use your card unless you make a commitment to keep track in a note book or spreadsheet.

Many people are cautious about credit card spending. However, when used properly, they are a great financial tool. Charge cards have the potential to be very useful when you want to make a purchase, but are reluctant to do it with cash. In the following guide, you will be able to read great credit card advice.

TIP! Set a realistic budget, so that you are able to stick to it. While your credit card limit may be ten or fifteen thousand dollars, that isn’t necessarily what you should spend.

When looking over your statement, report any fraudulent charges as soon as possible. The earlier the credit card issuer knows, the better chance they have of stopping the thief. This also helps absolve you of responsibility when it comes to the charges. Fraudulent charges can usually be reported by making a phone call or sending an email to the credit card company.

TIP! Use your credit cards wisely. Don’t buy everything you want, limit yourself to what is financially responsible.

Many consumers improperly and irresponsibly use charge cards. Debt is not always avoidable, but many people overcharge, which results in payments that they cannot afford. Remember to pay your credit card balance every month. By doing this, you are effectively using credit, maintaining low balances, and increasing your credit score.

Credit Card Company

TIP! Never give in to the temptation to allow anyone to borrow your credit card. It may be a friend that needs it for something, but it is never a good idea to give your credit card to anyone.

If you only pay the minimum amount each month on your credit card, only the credit card company benefits. The monthly minimums are deliberately designed to be so low that you will be paying for years in in order to pay off your balance. In the meantime, the credit card company will be collecting inordinate amounts of interest from you. Never pay just the minimum payment. Avoid paying interest as much as possible in the long run.

TIP! Credit card experts suggest that your credit limit should not be more than three-quarters of your monthly earnings. If your limit is larger than one month’s salary, you need to pay it off as soon as you can.

Know what interest rate your card has. If you are applying for a new credit card, make sure that you are aware of what the rate is on that card. If you don’t go over this you may have to pay a lot more monthly than you expected. You might not be able to pay off your debt if you have to pay more and more interest.

TIP! Avoid closing your credit card accounts. Closing an account can hurt your credit score instead of helping.

Fees from going over the limit want to be avoided, just as late fees should be avoided. Both are pretty steep, and the cost of going over the limit can not only affect your wallet but also your credit report. Be very careful to never spend above the limit on your credit card.

TIP! It is not uncommon for people to avoid acquiring credit cards because they want to give the impression that they are debt-free. You should always have at least one card so you can establish credit.

Do not use credit cards to make purchases that are not affordable. Just because you want a new flat-screen TV, doesn’t mean a credit card is the best way to buy it. High monthly payments, along with months or years of finance charges, can cost you dearly. Leave the store and return the next day if you still want to buy the product. Then, if you decide to purchase it, you may be able to get low interest rates through in-house financing.

Credit Card

TIP! Before applying for a credit card, make sure that you investigate all of the fees associated with owning the card and not just the APR interest. There may be applications fees, cash advance fees and other service charges that make the card not worth getting.

Avoid the urge to lend a credit card to someone. It may be a friend that needs it for something, but it is never a good idea to give your credit card to anyone. You may end up exceeding your credit limit and incurring charges if they make charges you were not expecting.

TIP! Keep a close eye on transactions made with your credit card. You can also get mobile alerts.

The advice about credit cards gleaned from this article will help everyone eliminate their fear about using these cards. Bank cards are very useful when they are used in the right way, so there is no reason to be afraid to use them. Always remember the good advice you have been given and you will not have any problems.


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