Credit cards have the advantage of allowing people to buy items without having the full amount of the price. Before applying for a new credit card, there is some basic knowledge that you should be aware of in order to prevent yourself from getting into insurmountable debt. Continue reading this guide in order to get good credit card advice.
Understand the terms and conditions for any credit card prior to agreeing to the use of the card. The terms include interest rate, yearly fees and payment terms. The fine print can be daunting, but a little effort can make a huge difference in your financial situation.
Always memorize any pin numbers and passwords for your bank or charge cards and never write them down. Memorizing your PIN or password is essential, and it helps to ensure that only you can access your account. Writing the pin number down, and having it in the same place as your card, will give anyone access to it if they want it.
Your interest rates are not set in stone, and you can do something about getting them lowered. Credit card companies compete for your business, and you can often negotiate the interest rate. If you do not like your current interest rate, contact your bank and request that they lower it.
It is commonly thought that high limits on charge cards should never exceed 3/4 of a consumer’s monthly pay. If you have limits that go higher than what you make a month, you should try paying these cards off as soon as possible. Your interest will quickly become unpayable.
Call your lender if you are unhappy with the interest rate on your charge cards. Request that they reduce it. If, after you have talked with their retention team, they won’t do this, then you should start shopping around and find a company that offers better interest rates. When you find one, try to switch over to that company right away.
Every year you should make sure to ask for a free credit report from each of the credit bureaus. Check to see if your statements match your credit reports.
If you are looking for a secure card, try to stay away from a prepaid card. These are just another form of debit cards and they are not reported for credit purposes. A lot of them charge additional fees and they act just like a checking account. Get a proper secured credit card by parting with a few hundred bucks for the deposit. These proper secured bank cards will help you to improve your credit rating, as they are reported to the major credit bureaus.
It is a good idea to contact credit card companies and request that they lower your interest rate. If you have been a good customer for a while, many credit card providers will be more than happy to lower the interest rate that they are charging you. It can end up saving you quite a bit and is not going to cost you anything to ask.
Many times charges for restaurants take longer to arrive on your credit card statement. That may cause you to spend greater sums of money, because you had the impression that more credit was available to you.
Credit Card Laws
Understand the recent developments in credit card law. Credit card issuers may not assess retroactive interest rate hikes, as an example. They also cannot bill using a double-cycle system. Take the time to learn the governing credit card laws. There are two major changes that have recently been enacted pertaining to credit card laws which may have a significant impact on you, so it is wise to be aware of them.
If you do not fully trust and know the company that you are communicating with over the Internet or phone, do not provide them with your numbers from your credit card. Be especially suspicious of unsolicited offers that ask for your information. Many scammers exist who want your card number. Be diligent and protect yourself.
If you have more than one credit card, try to pick one to pay off every month. If you have significant balances on different cards, using one specific card that is paid in full at the end of the month will help to build your credit score.
Think about receiving an unsecured line of credit from a credit card company after you have been paying down a secured card reliably. You may also see an increase in offers coming through the mail at this time. Re-evaluate your situation before deciding on which card you will accept.
Credit is a useful tool when it is wielded properly. The tips offered above can help you use your credit cards in a more responsible way, so that you will have the benefits of credit and not find yourself sinking into debt.