Even though it is necessary to have some cash on you, the future of finance depends on bank cards. The increase in bank fees is leading more and more people to keep their money on a credit card, and make transactions that way. Read the following article to learn how you can wisely use credit cards.
To help ensure you do not over pay for a premium credit card, double check whether the card has an annual fee attached to it. 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 a premium card, don’t get one.
Watch your credit balance cautiously. Know what your limit is and how much you’re spending, you don’t want any surprises. If you pass that limit, you will end up paying more in fees than you know. If you continue to go over your limit, you will have a difficult time paying down the balance.
If you do not have credit and want a credit card, consider getting a co-signer. A friend that you trust, a parent, sibling or anyone else with established credit can be a co-signer. They are required to state their willingness to assume responsibility for outstanding balances if you fail to pay. This is the perfect way to obtain your first card and start to build positive credit.
Always read the terms and conditions of your card before using it. As a general rule of thumb, usage of a credit card represents acceptance of all terms in the credit card’s agreement policy. It may be fine print, but it is still very important.
If you find yourself dissatisfied with the interest rate on your card, request an adjustment. If they decline, then you might want to consider looking for a credit card that has better interest rates. Once you have found it, then switch over to this company so they will service your needs better.
Credit Card Laws
In recent years, there have been several new credit card laws enacted, and the wise consumer will familiarize himself with them. For example, companies cannot give retroactive rate hikes. They are also not allowed to engage in double-cycle billing. Take the time to learn the governing credit card laws. The Fair Credit Billing and the CARD Act are two of the major changes that have recently been made.
Carefully scrutinize your monthly credit card statements. Make sure all the charges are accurate. Look especially for fraudulent charges that you didn’t make at all. Report these inaccuracies to you provider right away. By reviewing your statements, you can prevent being charged for any inaccuracies.
Do not just concentrate on the APR and the interest rates of the card; check on any and all fees and charges that are involved. There are oftentimes charges for service, applications, cash advances and many other unexpected fees.
Never fax any credit card details to anyone. A fax may be left there for a long time and your information could be stolen by anyone. Anyone in their office might be a thief. This opens you up to fraudulent activity and all of the problems that come with it.
Negotiate for a better interest rate, especially if you have been with the company for a long time. You can often negotiate the rate down a percentage point or two if you contact the credit card issuer. You can probably get a lower APR by requesting it, presuming you have been a good customer who makes timely payments.
Bank cards that you’re not using should be closed. You are making yourself a likely victim of fraud if you choose to keep them open. Some cards charge annual fees, and you’ll still be liable for those even though you aren’t using the card.
Do not apply for a credit card unless you have the self-control to use it properly. Some people are tempted to spend way more than they can afford when they first get a credit card. These people shouldn’t have bank cards. When they decide to open a credit account, they’re making themselves prone to having a bad financial future.
Keep a list of your recent credit card purchases located in an easily accessed spot. This will show you how much you are spending and what exactly that money is going to. Many people find that their credit spending gets out of control because they do not ever monitor it, and they end up in financial trouble.
Remember to use all of your cards at least occasionally in order to keep the accounts active. If credit companies see that you do not use an account, they can close it with very little warning. Use your card for things for which you already have money, and pay off your charges immediately.
Credit card usage is increasing as more individuals choose them over the growing regulations and fees charged for debit card use. You can also use the benefits that credit cards offer thanks to its increased use. Implement the tips you’ve just read into your life.