With all of the credit card horror stories out there, it is no wonder that some people are afraid of credit cards. Replace fear with a commitment to succeed with charge cards. Credit cards can be helpful when you need to purchase items but don’t want to use cash. The following article contains some valuable credit card advice.
Try to keep at least two, but not more than three, credit lines open simultaneously. This helps improve your credit score, particularly if you can pay off the cards each month in full. Do not over-do it. Having more than three credit cards can concern a lender looking at your credit report.
Always check the fine print. If you receive a pre-approved offer, look over the conditions and terms. Knowing the details is important. Be aware of how much the interest rates are going to be, and how much time it will take you to pay for it. Remember to check out any grace periods and finance charges involved, too.
There are many bank cards that offer rewards programs for your spending. If you use a card all the time, you need to find one with a useful loyalty program. If used wisely, you can end up with an extra income stream.
Do not have a pin number or password that would be easy for someone to guess. Never use your birth date, children’s names, middle name, or anything else that could be figured out easily by someone looking to steal from you.
You have to verify the legitimacy of the seller before you make a credit card purchase on the Internet. Try out any telephone numbers they have listed, and if there is no address listed for the seller, treat this with suspicion.
Many experts suggest that your credit limit on a given card should never exceed three-quarters of your monthly income. Also, you should never allow yourself to have a limit that exceeds your monthly salary. If you do, pay that card off and ask for a limit reduction. The interest on that will soon be way over your head.
Credit Card Company
Carefully review all statements you get from your credit card company. Look for inaccurate charges as well as charges you didn’t make in the first place. Report any discrepancies to the credit card company right away. That way, you can avoid paying unnecessarily, and prevent damage to your credit record.
Do not just concentrate on the APR and the interest rates of the card; check on any and all fees and charges that are involved. The card may come with additional fees and charges that make the card unbearable.
When you are juggling several charge cards, it can be worthwhile to select one that you routinely pay off each month. Even if you have significant debt on several cards, you can help increase your credit score by having one card which you pay off monthly.
In order to avoid using your charge cards accidentally, place them in a different area in your wallet or even hidden behind your debit card. That way, even if you are rushed or focusing on something else, you will probably use a debit card rather than charging something accidentally.
The advice in this article will help anyone fearful of getting their first credit card. If you use common financial sense, there is no reason to fear using a credit card for purchases. Always remember the good advice you have been given and you will not have any problems.
Author: Eddy PriceThis author has published 478 articles so far. More info about the author is coming soon.