The Ins And Outs Of Using Credit Cards Wisely
Having a credit card is very helpful should you find yourself in a financial jam. Must you pay for something but find yourself short of cash? This is not an issue. Just put it on the plastic and you are fine. Do you want a better credit score? You can do it with a credit card! Check out the advice in this article for some hand credit card tips and tricks.
Be aware of the interest rate that you are being charged. It is very important to understand what the interest rate is before you get the credit card. If you aren’t aware of the rate, it could turn out to be much higher than you initially thought. If you have to pay a lot of interest, then it may be impossible for you to make your monthly payments.
Sign each credit card as soon as you receive it, as most people don’t do this, which makes stolen cards very easy to use. Lots of venders will require a signature verification when purchasing from them.
You want to stay away from both late fees and over the limit ones. These can both amount to significant sums, and can also do damage to your credit score. Be very careful to never spend above the limit on your credit card.
Set yourself a spending limit on your credit cards. You should already be budgeting your income, so just include your credit cards in your existing budget. Credit cards should not be viewed as “extra” money. Set aside a particular amount you can safely charge to your card every month. Ideally, you want this to be an amount that you can pay in full every month.
Keep a list of the “lost/stolen card” phone numbers for each of your credit card issuers along with your credit card number for reference. Maintain it in a secure place, like a safe, and keep it separated from your cards. The list is useful as a way to quickly contact lenders in case of a lost or stolen card.
As you can plainly see, a credit card is used for a number of things. They are a great convenience so you don’t have to carry cash and they can be a great tool for improving your credit score. Make use of the tips above and learn to use your credit cards wisely.