Bank cards are used by people everywhere, and often help people reach goals. Having a credit card dramatically increases a person’s financial freedom. That said, you must be wise in your credit card choices and uses. The following article is going to provide some good tips that will assist consumers in making these decisions.
Check whether there is an annual fee attached to your credit card, to make sure you aren’t overpaying for a premium card. Annual fees for premium credit cards can range in the hundred’s or thousand’s of dollars, depending on the card. If you don’t care about exclusivity, these cards aren’t for you.
If you are searching for a new card, you should limit your search to the cards with low rates and with no annual fee. Choosing a card that has an annual fee attached is a waste of your money when there are numerous charge cards available without one.
Don’t buy things that you can’t pay for on a credit card. Just because you want a new flat-screen TV, doesn’t mean a credit card is the best way to buy it. High monthly payments, along with months or years of finance charges, can cost you dearly. Go home and take a day or two to think it over before making your choice. If you still plan to buy it, the store’s in-house financing usually offers lower interest rates.
Never keep a written record of your pin number or password. It is vital that you know your password, and that you’re the only one who has access related to it. Writing your pin down and placing it in a similar area where you place your card is not a good thing to do.
Do not allow anyone to use your cards. Even if it is a great friend of yours, that should still be avoided. It can lead to over-limit charges if your friend should put more on the card than you had authorized them to.
Credit Card Information
When you make online credit card purchases, exercise caution and common sense. Prior to entering credit card information within the Internet, be sure you’re using a secure site. Secure sites keep your card information safe. If you receive emails asking for your credit card information, do not respond. They are likely phishing for your information.
Do not buy anything online with a credit card until you are certain that it is a legitimate business. Call phone numbers given on the website to ensure they’re working, and do not purchase from a seller that doesn’t have an actual address listed.
Have a running list with credit card account numbers and lender’s emergency contact phone numbers. Have this information in a secure area, like a safe, and away from your actual cards. Use this list to contact your credit card issuers if your charge cards are ever lost or stolen.
Avoid closing your credit card accounts. While you may think a closed account will lead to a credit score rise, this is, in fact, incorrect. The reason is because the amount of available credit you have is lowered and that will be balanced against what you owe.
A great tip that credit card users can use is to ask for a copy of their credit report every year to make sure that everything is accurate. Check to see if your statements match your credit reports.
Know what recent credit card laws have been created recently. For example, no credit card company can impose a retroactive rate increase on you. You also cannot be billed twice in one cycle. If you understand the laws, you can understand your rights as a consumer. The two important laws that have come into effect recently are the CARD Act as well as the Fair Credt Billing Act.
Credit cards are not without advantages; they make spending easier and help to create a desirable lifestyle. When credit is used responsibly, it is great. However, poor credit habits have mired many consumers in ruin. The information provided here can assist people in making smart credit card choices that will enable them to live a better life.