Consumer advice is valuable with regard to charge cards. The following article is designed to educate you on the use of your bank cards and how to avoid problems. Often, lack of proper knowledge is why people have credit card difficulties.
Before closing any credit card, understand the impact it will have on your credit score. There are things that can happen that negatively affect your credit score when you close a credit card account. Also, maintain cards that have most of your credit history.
Do not pick a pin number or password that could easily be picked out by someone else. Using your birth date, middle name or your child’s name can be problematic, as it is not difficult for others to find out that information.
Anytime you use bank cards for online purchases, print and save a receipt. Keep receipts until you can verify the store that sold you the item charged you the same amount that you are charged on your credit card. In the event of a discrepancy, call the credit card company and the retailer at your earliest possible convenience to dispute the charges. This is a fantastic way to be sure that you’re never being charged too much for what you purchase.
Be careful when you make online purchases. Closely scrutinize the companies you are willing to give your personal information to. Call vendor numbers to verify the company’s validity. If there is no physical address on the site, avoid transacting with them.
Avoid closing an account. This may seem like a smart thing to do when trying to raise a credit score, but it actually can damage the score. When you close accounts, you reduce how much credit you have. This then closes the gap between the credit you can borrow and how much you currently owe.
Secured Credit Card
Avoid prepaid cards if you are looking to get a secured credit card. Prepaid cards are not actually bank cards, they are debit cards, and their use isn’t reported to credit bureaus. Many of them charge extra fees as well, and all they are is another checking account. Make a deposit to get a secured credit card which reports to credit bureaus and can improve your credit rating.
Be aware of recent credit card laws. For example, credit card companies cannot impose retroactive rate increases. They also cannot bill using a double-cycle system. 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.
Review each of your credit statements closely. Look for inaccurate charges as well as charges you didn’t make in the first place. If you find inaccuracies, tell the credit card company as soon as possible. That way, you can avoid paying unnecessarily, and prevent damage to your credit record.
Do not fax your credit card number to anyone. Faxes are sometimes left unsupervised for long periods of time, and many people may have access to your number. Even a small amount of information can give other people the ability to use your card. If a criminal steals your credit card number, your credit could be seriously damaged.
Once you are the owner of a secured card, the company may offer an unsecured card once you have proven yourself. Credit card offers will probably start arriving in your mail again when you reach this point. You will have to decide at that time what the best option is for you.
If you have good credit, yet are paying a high annual percentage rate, try calling the credit company and talk with them about lowering it. In some cases, they will work with you. If you do carry a balance, a lower rate can mean significant savings.
Place bank cards behind debit cards in wallets in order to prevent accidental credit charges. By doing this, you will be reminded to use your debit card and not unintentionally charge something.
Don’t use rewards cards exclusively and forget about your debit card. Charging everything on one card to get free plane tickets might prove successful. However, you are also likely to rack up interest rates and charges worth several flights.
If you’re traveling, especially internationally, bring at least two charge cards. To have more financial options, having two cards, with two independent banks, will help. You probably won’t be able to access funds with either card if you have a problem with one and the other is issued by the same bank. When you have a couple of cards from different banks, you are able to access your credit easier.
If you are choosing a credit card based on the rewards or perks offered, make sure you understand everything about the program before agreeing to it. Check to see if there is an expiration date on the reward and decide if you can take advantage of them before they expire.
As you have seen, it can be all too easy to cause problems for yourself by using bank cards improperly. Getting too many cards, and giving in to the temptation to max them out can leave you in trouble in no time. Hopefully, this article will help you to avoid credit card problems and keep yourself financially healthy1