Use Your Credit Cards The Right Way

Use Your Credit Cards The Right Way

What kinds of feelings come to mind when you hear the words “credit cards?” If you are like many other Americans, you probably feel anxious and nervous when you hear these two words put together. This fear and anxiety will pass, however, as soon as you arm yourself with proper information.

Check your credit report regularly. By law, you are allowed to check your credit score once a year from the three major credit agencies. This may be often enough, if you use credit sparingly and always pay on time. You may want to spend the extra money, and check more often if you carry a lot of credit card debt.

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, add it into your monthly budget. Budget a specific amount that you are financially able to put on the card each month, and then pay that amount off at the end of the month. Try not to let your credit card balance ever get above that amount. This is a great way to always pay your credit cards off in full, allowing you to build a great credit score.

Learn how to manage your credit card online. Most credit card companies now have online resources where you can oversee your daily credit actions. These resources give you more power than you have ever had before over your credit, including, knowing very quickly, whether your identity has been compromised.

An important tip when it comes to smart credit card usage is, resisting the urge to use cards for cash advances. By refusing to access credit card funds at ATMs, you will be able to avoid the frequently exorbitant interest rates, and fees credit card companies often charge for such services.

If you do a lot of traveling, use one card for all of your travel expenses. If it is for work, this allows you to easily keep track of deductible expenses, and if it is for personal use, you can quickly add up points towards airline travel, hotel stays or even restaurant bills.

A great way to save money on credit cards is to spend the time necessary to comparison shop for cards that offer the most advantageous terms. If you have a decent credit history, it is highly likely that you can obtain cards with no annual fee, low interest rates and perhaps, even incentives such as airline miles.

It is a good idea to contact credit card companies and request that they lower your interest rate. If you have built a positive relationship with the company, they may reduce your interest rate. This can save you hundreds of dollars a year and all it takes is a phone call.

Be honest on your credit card application. Some companies fail to verify your income but offer you a card that has a high limit. The result can be that you charge a higher amount of money than you are able to pay.

Be careful when you are signing up with secured credit card companies because a lot of them charge high fees in exchange for issuing you a card. If you have to get this type of card, then you should shop around to make sure that you are paying the lowest fees.

How do you feel about credit cards now? Do you feel more confident on how to use them? If so, then great, but if not, that simply means you need to continue educating yourself. By learning all that you can about credit cards, you will feel better about using them.

 

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