These days it is important that consumers get all of the advice that they can get to advise them against overspending. Credit cards are really useful, but they might also cause a lot of debt! The best thing to do is carefully peruse all the fine print.
Go over the fine print. Any pre-approved offers or people saying they will help you to get a card are most often worthy of your suspicion and further inquiry before signing up. Know the details about interest, like the rate and dates. Additionally, you may wish to know about their fees and any applicable grace periods.
Paying the credit card account by its due date is very important. Every bill you receive will have a due date and failing to pay by then will result in penalties and costly fees. Also, you run the risk of having your interest rate increased.
Read emails and letters from your credit card company upon receipt. A credit card company, if it provides you with written notifications, can make changes to membership fees, interest rates and fees. If you have an issue with these changes, you have every right to cancel your card.
A credit card should not be used for purchases you cannot afford. A credit card isn’t the magical solution to getting the flat screen TV or new computer that you have always wanted. 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.
Avoid the temptation to lend your credit cards to anyone. Even if a close friend needs to use one, don’t do it. This can lead to your friendship being ruined. Or it can result in over the limit charges should your friend charge more than you authorized.
Maintain a list of all your credit card numbers and the emergency phone numbers for your lenders. This list should be kept in a safe location away from your credit cards. The list will assist you in promptly notifying card lenders should you lose your cards or have them stolen.
Before you think about receiving a credit card, do a little financial survey first. Typically, you want to keep the limit of your card less than three quarters of the salary you make every month. If your limit is higher than one month’s salary, work on reducing your balance immediately. Otherwise, you may soon be paying a lot more interest than you can afford.
Always keep your credit card accounts open, if possible. Frequent switches to new companies is not wise unless you find it absolutely necessary. The amount of time you have accounts open impacts your credit rating. A key trick to establishing solid credit is to keep accounts open for long periods of time.
As said in the beginning, the ups and downs of the financial world can be confusing to consumers. The best way to manage and use a credit card is with some common sense and a little education, as this leads to an improved life and financial situation.