Knowing When And When Not To Use Your Credit Card

TIP! If you want a card but don’t have credit, you might need a co-signer. Anyone who has an established credit score can cosign, such as a friend, parent, or sibling.

Although charge cards can be a great financial tool, they can also be a huge frustration for many people. The only way you can make proper credit decisions is by following good advice. This article is filled with information that will help you get the most from your charge cards and, at the same time, avoid any of the problems commonly associated with credit card ownership.

TIP! Use wisdom with credit card usage. Don’t buy anything that you know you can’t afford.

Only inquire about opening a retail credit card if you are serious about shopping at the store regularly. If a retail store puts out an inquiry to the credit bureaus to check about your qualification status for their card, it will impact your score. If you have too many credit inquiries, your credit score may take a hit.

TIP! Many credit cards come with rewards or loyalty accounts. Choose a credit card whose loyalty program offers you something valuable.

Go over the fine print. If there’s an offer for a pre-approved credit card or if a person says they can help you get a card, get all of the details beforehand. Always know your interest rate. Know the level and the time for payback. Furthermore, make sure you are aware of potential fees or billing grace periods.

TIP! If you cannot afford something, don’t put it on a credit card. Just because you want a new flat-screen TV, doesn’t mean a credit card is the best way to buy it.

Carefully look over your balance and statement. You should also remain aware of your credit limit. Exceeding the limit will result in significant fees. When you continue to exceed the limit, it is going to take much longer to pay it off.

Credit Score

TIP! Avoid using public computers to buy items with your credit card. Information is sometimes stored on public computers.

In order to get the best bank cards, you need to keep tabs on your credit record. Your credit score will determine what kind of credit card offers you will receive. In order to get accepted for charge cards that have low interest rates, lucrative reward schemes and low fees, you need to have a stellar credit score.

TIP! Never give out your card number over the phone unless you trust the company and you initiated the call. Be extra cautious if the offer requiring your information was unsolicited.

If you are purchasing something at a retail location with a credit card, make sure that you never leave any spaces on the receipt blank. Having a blank space on your receipt is literally leaving space for someone to add an amount where you don’t want it. Be sure to mark through the space with a straight line. You should also always check your statement against your receipts every month to ensure they match up.

TIP! To protect your credit, never use a fax to send your credit card information. A fax may be left there for a long time and your information could be stolen by anyone.

If you’re not pleased with the interest rate, ask your bank to change it. If, after you have talked with their retention team, they won’t do this, then you should start shopping around and find a company that offers better interest rates. After you find one, change to the credit card that will service your needs better.

TIP! Issuers of secured cards are often willing to give you unsecured cards once you have demonstrated your financial responsibility. If you’re a loyal customer who pays on time, the company may start mailing you unsecured applications.

When looking for secured cards, do not get prepaid cards. These are actually debit cards, and they do not report to the major credit bureaus. Lots of these cards charge extra fees too, and they are nothing more than a checking account really. Instead of using a debit, your best bet is to put some money into an account and get yourself a secured card to use. This will help you beef up your credit score as an added bonus.

TIP! Use debit cards first instead of credit cards to avoid unwanted debt. This way, you’re likely to spend your debit card funds on those impulsive purchases and you won’t need to pay interest on them.

Frequently monitor the amount you are spending every month on charge cards. Keep in mind that impulse and incidental purchases can add up really fast. If you are not watching how much you charge to your credit card, you might not have the money to pay the bill when it comes.

TIP! Review all the credit card accounts you have and think about closing those that you do not use. Closing unused accounts will protect you from fraud.

Never provide your card number online or over the phone without really knowing the company that you are in contact with. If you receive an offer that requests for your card number, you should be very suspicious. There are tons of scammers and unscrupulous individuals who are just waiting for the chance to steal credit card information. Be relentless in protecting yourself.

TIP! If you are late or miss payments, try to get a lower interest rate if your credit card provider attempts to penalize you. If you are late with your payment, the credit companies can and will raise your rates and tack on extra fees.

As was stated earlier, charge cards can be a source of great frustration. Research the company and offer before you apply for a credit card. This will simplify selecting the best one to suit your needs. Use the information presented here to help you select the right card and use it wisely.