Helpful Advice For Using Your Credit Cards

Helpful Advice For Using Your Credit Cards

Everyone should have one credit card simply to build good credit and learn basic money-management skills. Consumers should be well-informed about credit cards so that they can make the right decisions. Below, you will find some great information about credit cards in general, from the types of rewards you could receive to different ways to keep up with your payments.

Learn how closing a line of credit will affect you prior to closing it. Sometimes closing credit cards can leave negative marks on credit reports and that should be avoided. For the oldest cards that make up a big chunk of your credit score, it is worth trying to keep them open.

Speak with the credit card company right after you see a charge on your statement that you did not make. The earlier the credit card issuer knows, the better chance they have of stopping the thief. Doing this also helps ensure that you will not have to pay for such charges. If you suspect fraudulent charges, immediately notify the company your credit card is through.

Carefully consider those cards that offer you a zero percent interest rate. It may seem very alluring at first, but you may find later that you will have to pay sky high rates down the road. Learn how long that rate is going to last and what the go-to rate will be when it expires.

In order to keep a good credit rating, be sure to pay your bills on time. Avoid interest charges by picking a card that has a grace period. Then you can pay the entire balance that is due each month. If you cannot pay the full amount, pick a card that has the lowest interest rate available.

If you have a credit card account and do not want it to be shut down, make sure to use it. Credit card companies are closing credit card accounts for non-usage at an increasing rate. This is because they view those accounts to be lacking in profit, and therefore, not worth retaining. If you don’t want your account to be closed, use it for small purchases, at least once every three months.

Don’t buy things that you can’t pay for on a credit card. Just because you can use your card to get a new TV doesn’t mean you can afford it. You will pay loads of interest, and the monthly payments may be out of your reach. Leave the store and think it over for a day prior to making your decision. If you are dead set on buying the item, ask the store if they can beat your credit card’s interest rate.

Anytime you apply for a credit card, you should always familiarize yourself with the terms of service that comes along with it. This will allow you to know what you can and cannot use your card for, as well as, any fees that you might possibly incur in different situations.

Make sure that you watch your statements closely. If you see charges that should not be on there, or that you feel you were charged incorrectly for, call customer service. If you cannot get anywhere with customer service, ask politely to speak to the retention team, in order for you to get the assistance you need.

Many companies advertise that you can transfer balances over to them and carry a lower interest rate. This sounds appealing, but you need to carefully consider your options. Think about it. If a company consolidates a higher amount of money onto one card and then the interest rate spikes, you are going to have a hard time making that payment. Know all the terms and conditions, and be careful.

Don’t be afraid to speak up and call your bank if you are unhappy with the interest rate on your card. If they end up refusing you, you can always look for a credit card with better interest rates. After you find it, transfer your debt to the new card.

As this article said in the beginning, credit cards are great at helping one deal with their credit and can be beneficial. Fully understanding the terms and conditions of various credit cards is the best way to make an educated choice when selecting a credit card provider. Knowing what to expect from having a credit card will help you make better choices.

 

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