In many bad financial situations, a credit card can act as a lifesaver. Do you have a serious need right this moment, but lack the cash to resolve it just now? It needn’t be a problem. A credit card is accepted for virtually any need you might have. Would you like to build up your credit? The process can be simple with a credit card. Keep reading for more useful ways to use a credit card.
Always read the fine print to see if there’s an annual fee before accepting an exclusive credit card. The annual fee for a platinum or black card could cost from $100, all the way up to $1,000, depending on how exclusive the card is. If you do not need the perks associated with these cards, don’t pay the annual fee.
Avoiding late charges is important, but you also want to avoid going over your limit because you will be charged for that as well. Both of these are pretty large fees and going over your limit can put a blemish on your credit report. This is a very good reason to always be careful not to exceed your limit.
If you are having financial problems, talk with your credit company. If you are going to miss an upcoming payment, work with your creditor to come up with a solution. This communication may keep the company from filing a late payment report with creditreporting agencies.
You may want to find a co-signer if you don’t have enough credit to get your own card. A friend that you trust, a parent, sibling or anyone else with established credit can be a co-signer. They have to be willing to state they will pay what you owe if you are unable to pay it. That can be a terrific method of acquiring a first card for credit building purposes.
Make sure you are fully aware of your card agreement’s terms. Many companies consider you have accepted the terms when you initially use the credit card. The agreement may have fine print, but it is critical for you to carefully read it.
Don’t have any new bank cards sent to you if you have a mailbox that is not locked at all times. Credit card thieves have stated that they steal cards out of unlocked mailboxes.
Many experts suggest that your credit limit on a given card should never exceed three-quarters of your monthly income. If you have credit limits that are more than you make every month, you need to start paying off that debt right away. Otherwise, you may soon be paying a lot more interest than you can afford.
Know that some charges, like restaurant and grocery charges, take longer to appear on your statement than others. This could cause you to overspend because you are not aware of how high your balance is.
Review the statements you receive from the credit card company very carefully. Make sure all the charges are accurate. Look especially for fraudulent charges that you didn’t make at all. It’s important to contact your credit card provider about any discrepancies as soon as possible. This could prevent you from having to pay a lot of money, and it could also save your credit rating as well.
Make note of all fees and charges of potential cards. Other fees like service charges and cash advance fees can quickly add up.
Many credit card companies will present you with an unsecured card after you have proven yourself with a secured card. At the same time, the offers will start coming in the mail. At this point you will have to start to make decisions as to what cards you would like to sign up for.
If you have credit cards that are sitting unused in your sock drawer, you should close them. Identity theft is much more likely if you leave these unused accounts open. You could be charged fees annually by having a credit card that you’re not using.
If you ever misplace or lose your credit card, remember to call your credit card provider right away. Your credit card company can cancel your card immediately so that others can’t try to charge things to it. The company will then send you a card with a different credit card number.
Pay your charge cards on time every month. Even missing a payment one time can cause your card company to increase your interest rates. In the same way, missed or late payments are reflected in your credit report and it lowers your credit score. Consider using auto-payments online in order to eliminate late payments.
Always make sure to pay the minimum balance each much, but it is better to pay more. If you miss a payment, your credit score could be negatively affected, which will make it harder for you to get access to credit in the future. In addition, you could pay an addition fee because many card companies tack on a hefty late-payment fee.
As you can tell, credit cards may be used for many things. Whether they are used solely for purchases or for more advanced purposes like managing debt and building good credit, responsibly-used credit cards are extremely helpful. Keep this advice in mind whenever you use your card.