Some people fear getting charge cards because of the problems associated with them. There is no reason to fear owning a credit card. Charge cards have the potential to be very useful when you want to make a purchase, but are reluctant to do it with cash. This article has excellent credit card tips.
A way to make sure you are not paying too much for certain types of cards, be sure that they do not come with high annual fees. Certain exclusive cards charge annual fees upwards of $1,000. If you don’t care about exclusivity, these cards aren’t for you.
Create a budget for your charge cards. Many people think a budget is only for the bills you owe; however, you should also set a budget for credit card usage. You do not want to think of your credit card as extra money. Come up with an amount that you are able to use for your charge cards each month. Stick to that, and pay it off each month.
Keep a close eye on your credit card balance. Also know your current credit limit so that you avoid exceeding it. Going over your credit limit will raise your fees and your overall debt. If you continually keep your balance over the limit, the fees will continue to add up and you will have difficulty getting your balance paid down.
The signature strips on the back of your new bank cards should be signed as soon as you receive them. Too many consumers forget this important step, and their credit cards are that much more at risk of theft. The signature on the back offers protection against fraudulent purchases because the cashier verifies that the customer’s signature matches the signature on the card.
Just because you have reached the age to acquire a credit card, does not mean you should jump on board right away. While many people can’t wait to own their first credit card, it is better to fully understand how the credit card industry operates before applying for every card that is available to you. Take the time to learn how credit works, and how to keep from getting in over your head with credit.
When you make online credit card purchases, exercise caution and common sense. It is important that any website you are giving your credit card details to is secured. If the site is trustworthy, your information is secure and encrypted. You must always disregard email messages seeking credit card information.
Before using your credit card online, check to verify that the seller is legitimate. 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.
If you find yourself dissatisfied with the interest rate on your card, request an adjustment. If they don’t want to work with you, look around for a more ideal interest rate. After you find it, transfer your debt to the new card.
Always keep your credit card accounts open, if possible. Unless necessary, you don’t want to switch accounts around. The longer your positive credit history is with a creditor, the better your credit score. Keeping accounts open helps credit.
Educate yourself on recent laws affecting consumers using charge cards. For example, credit card companies can’t increase rates on former months. They are not allowed to operate on double-cycle billing schedules either. Study the laws and keep up with the changes. Two legislative changes have occurred that need to be noted, including the CARD Act.
Never send credit card numbers via fax. Faxes sit in offices for hours on end, and an entire office full of people will have free access to all of your personal information. Someone could then use your credit information. This opens you up to fraudulent activity and all of the problems that come with it.
Once you close one of your credit card accounts, make sure you destroy the physical card. If you do not dispose of it, you may find it falling into the wrong hands, which could lead to someone reopening this account and running up a huge debt.
If you are faced with a high APR on your cards, but have been a good customer to the bank, call them and ask for a reduction. In certain circumstances they will. This will save you plenty each month, if you have a balance on your card.
Hopefully, the advice about bank cards will help you alleviate your unnecessary fear of using charge cards for purchases. Bank cards are very useful when they are used in the right way, so there is no reason to be afraid to use them. Just remember this article’s suggestions and you’ll be alright.