With all of the credit card horror stories out there, it is no wonder that some people are afraid of credit cards. There’s no reason for you to be afraid of charge cards. Credit cards can be helpful when you need to purchase items but don’t want to use cash. In the article that follows you can find advice that will help you with credit cards.
Be aware of the dangerous allure of high credit limits. It’s hard to resist this temptation while knowing you could get away with charging thousands of dollars worth of purchases. This can cause you major financial trouble. Avoid impulse buys at all costs. If you are tempted to make a big purchase on a credit card, give yourself at least two days to think about it first.
Lots of people think that not having bank cards gives them an edge. You must carry one credit card if you want to build credit. Charge things on it, but repay the full balance monthly. If you have no credit at all, your credit score remains low. This will impact you in the future.
Credit Card
Never pay off credit card debt with a credit card. Some people use cash advances to help them buy some time when they have an emergency. However, fees and interest rates involved with this “trick” create an even larger financial disaster the next time a bill is due.
If you use more than one credit card, try singling one out and paying it off monthly. Even if you are carrying significant debt on other cards, maintaining an active card that you pay in full every month will help you build a better credit history.
Do not close active credit accounts. You may think that closing accounts is a good idea, but it can actually harm your credit. This is due to the fact that you subtract from the gross credit that you have, which lowers your ratio.
Review each of your credit statements closely. Look for any errors with the charges that you made and make sure there are no unauthorized charges. Report any inaccuracies to your credit card company immediately. By reviewing your statements, you can prevent being charged for any inaccuracies.
Read all fine print before applying for any secured card. Often, secured credit card issuers charge hefty fees that are taken out of your deposit, and you may wind up with very little credit.
If you do have poor credit, then you may want to get a secured card. It will cost you money, but secured cards are easy to get and can help you raise your credit score.
Credit Card
If you have yet to turn 18, it is nearly impossible for you to get your own credit card. You will probably need to have a joint account with an adult if you want to use a credit card. Retail and department stores may give a card to a teen, but major credit card companies will not.
You should close all credit card accounts that you don’t use. Keeping them open exposes you to fraudulent activity. You may also have to pay annual fees even if you no longer use that card.
If you are traveling internationally, you need to call your credit card company and make them aware of that. Often, a company locks out of the country transactions if they appear suspicious or they are unexpected. If the company is aware of where you’re traveling prior to you going, it will take away any issues when using a credit card elsewhere.
Be sure you always make bill payments on time every month. Even one late payment can raise interest rates, cause you to incur late fees and ding your credit rating. Paying online is a good way to avoid delays or worries associated with snail mail.
The advice you have found here should prove beneficial in helping you to get over any fears surrounding credit card usage. When used in the correct manner, charge cards can be very useful, so fear not! Just use the information you’ve learned here and your fear of credit cards will be a thing of the past.
Article By Your Debt Relief Company