Charge cards help people all over the world in achieving goals that they have in life. With a credit card, you have more freedom to pursue your dreams. Having said that, it is always important to choose a credit card wisely and use it with a high level of diligence. This article contains some great advice to help consumers to do just that.
Keep one credit card open. Choose the card with the most longevity and history. This will help build your credit.
Annual Fees
Avoid credit cards with annual fees, even if the offers seem attractive. It is very easy to find a card that doesn’t have any fees due to stiff competition. Throughout time, those annual fees can add up and be more costly than you think.
Read the small print. If you see ‘pre-approved’ or someone offers a card ‘on the spot’, be sure to know what you are getting into prior to making a decision. It’s very important to understand what interest rates and payment schedules you’ll be dealing with. Also, find out about any fees and grace periods.
Create a spending budget for your charge cards. Many people budget their income and cash, and credit spending should be included as well. Your credit card is not extra money, so never view it this way. Set aside money each month that you can use to pay for credit purchases. Stay within your budget and pay any balance off each month.
If your credit card does not have an annual fee and charges no interest, if the balance is not carried over each month, you can actually save bank charges by using it more frequently. There are charge cards that have no fees as long as they are paid in full monthly, but debit cards have fees all of the time. Lots of people utilize prepaid cards for the purpose of direct deposit of paychecks so that they avoid banks entirely.
Keep a close eye on your credit balance. You also need to know how close you are to your credit limit. If you happen to charge an amount over your limit, you will face fees that are quite costly. This will make it harder for you to reduce your debt if you continue to exceed your limit.
Carefully monitor your monthly statements. Check with yourself to determine whether all the charges are right, if there are any changes, and whether any credits have been put on. If you find an error quickly, the company will be more likely to correct it for you.
Credit Card
Never fax credit card numbers. A fax can be left in an office for a long time while anyone can get the card number. Your credit card number could very easily be stolen. That can set you up for fraudulent activity on your account, as well as all the problems that go along with that.
Review your statement carefully each month. Always verify the accuracy of new charges you see on the statement. If there are any charges that do not display the proper amount or ones that were not made by you, you need to contact the credit card company as soon as possible. Disputes are always easier to resolve when you start them as soon as possible.
Credit Card
Report a lost or stolen credit card to the credit card company as soon as you notice it is missing. If a thief uses your card prior to the theft being reported, you might end up paying for whatever they purchased. Once you have reported a card stolen, legally you cannot be liable for any further charges made on the card.
A lot of cards have sign-up bonuses. Be certain that you have a solid understanding of the terms, because in many cases, they must be strictly followed in order for you to receive your bonus. Frequently, you are required to charge significant sums on the card in a short time to qualify for the bonus. Be sure to understand those terms so you are not disappointed.
Start by paying off cards that carry high interest rates. Never keep a large balance on a card that has a high interest rate since this will cost you hundreds of dollars a year. This means that you should always focus on those high interest cards first before you attempt to pay off cards with lower interest rates.
Come up with a budget for your spending. The urge to spend is great when you have a new credit card. Don’t do that. Prior to using the card you should plan a personal budget. Stick to your budget to avoid future issues.
Many times, bank cards will open up new opportunities and allow for some breathing room with monthly spending. If they are used well, they provide a great option, however, they also carry a heavy risk. This article is loaded with advice to help consumers make wise decisions when using their charge cards.
Article By Your Debt Relief Company