Tips That All Credit Card Users Must Know
Credit cards may make or break you, when it comes to your personal credit. Not only can you use them to help build up a great credit score and secure your future finances. You may also find that irresponsible use can bury you in debt and ruin you. Use this article for great credit card advice.
Before you choose a credit card company, be sure that you compare interest rates. There is no standard when it comes to interest rates, even when it is based on your credit. Every company uses a different formula to figure what interest rate to charge. Be sure that you compare rates, to ensure that you get the best deal possible.
Don’t fall for the introductory rates on credit cards when opening a new one. Be sure to ask the creditor what the rate will go up to after, the introductory rate expires. Sometimes, the APR can go up to 20-30% on some cards, an interest rate you definitely don’t want to be paying once your introductory rate goes away.
Don’t make any credit purchases with suspicious vendors. You do not want to deal with a merchant that does not provide a physical address on his or her site. Dial up the phone numbers shown on the merchant’s site to verify that they are in operation.
Try setting up a monthly, automatic payment for your credit cards, in order to avoid late fees. The amount you need for your payment can be automatically withdrawn from your bank account and it will take the worry out of getting your monthly payment in on time. It can also save money on stamps!
Only spend what you could afford to pay for in cash. The benefit of using a card rather than cash, or a debit card, is that it establishes credit, which you will need to get a loan in the future. By only spending what you can afford to pay for in cash, you will never get into debt that you can’t get out of.
The credit card that you use to make purchases is very important and you should try to use one that has a very small limit. This is good because it will limit the amount of funds that a thief will have access to.
Never apply for more credit cards than you actually need. It’s true that you need a few credit cards to help build your credit, but there is a point at which the amount of credit cards you have is actually detrimental to your credit score. Be mindful to find that happy medium.
Avoid the temptation to take out loans on your credit cards. It may seem to be the only way to get something paid for, but you must look into other options. Many financial advisers will tell you this and there is a reason for it. It could cost you your credit ratings later.
If your credit score is not low, try to find a credit card that does not charge many origination fees, especially a costly annual fee. There are plenty of credit cards out there that do not charge an annual fee. Find one that you can get started with, in a credit relationship that you feel comfortable with the fee.
Take advantage of security features that your credit card company might offer. These might include things like adding your picture to your credit card. This is an additional step that merchants can use to verify that you are the person using the card, allowing them to help you keep your card safe from criminal activity.
Once you have closed your credit card account, be sure that you completely destroy your card. If you do not destroy your card, someone could find it, reopen your account, and build up a huge amount of debt using your name.
As mentioned earlier in this article, credit cards can make or break you and it is up to you to make sure that you are doing all that you can to be responsible with your credit. This article provided you with some great credit card advice and hopefully, it will help you make the best decisions now and in the future.