Credit cards are useful for building credit and managing finances. You should understand the advantages and pitfalls of having access to easy credit. Below, you will find some great tips on using credit cards and using them wisely.
When looking for a new credit card, only review offers that charge low interest and have no annual fees. Since so many cards do not charge an annual fee, it is a waste of your money to pay annual fees.
If you can obtain a credit card with your picture on it, you should do so. Sometimes there is a decent personalization fee associated with having your photo on a credit card, but the peace of mind it offers is well worth it. Someone else trying to use your card would quickly discover they weren’t getting away with it.
Make major electronic purchases with your card. A lot of cards off protection plans on large purchases that last longer than standard warranties. If you do this however, always pay off the purchase as quickly as you can to skip all those ultra-high interest charges.
Don’t believe that any interest offered to you is concrete and will stay the same way. The credit industry is very competitive, and you can find many different interest rates. If you think your rate is too high, you can often call the issuing bank and request that they change it.
If you have poor credit, consider getting a secured card. You will be required to put up a few hundred dollars in advance in order to secure such a card, but it could be a good way to repair your credit if you use it wisely.
Don’t use your credit card for more than you can pay off. If you can’t make your payments, you risk damaging your credit score. If that happens, it will be difficult to finance a car, rent a place to live, receive insurance, or even get a job in some cases.
Avoid bank fees by using credit cards. Some credit cards have no fees at all if you pay the entire balance each month. On many checking accounts, debit card fees are unavoidable. Lot of people use prepaid credit cards for direct depositing paychecks in lieu of using banks.
Don’t apply for more than two credit cards. Every time you apply to get a credit card you will see it reflected in your credit score because it can make it lower. Online or snail-mail offers that promise you guaranteed approval should usually be avoided; these cards typically offer you extremely high interest rates.
If your credit card becomes lost or stolen, contact the issuing company immediately. By calling immediately, the credit card company can cancel your card so that it cannot be used. The credit card company will then issue you a replacement card with a brand new account number.
As previously noted, credit cards can be a major benefit to any person looking to improve their credit up and take control of their finances. It is important that you understand everything about your cards, because that will lead you to make better decisions where they are involved. There are many benefits to knowing the basics of credit cards, which help consumers make wise choices.