The beauty of credit cards is that people can use them to buy things without having to pay for them right away. Before applying for a new credit card, there is some basic knowledge that you should be aware of in order to prevent yourself from getting into insurmountable debt. Keep perusing the piece that follows to get some terrific credit card advice.
Learn how closing the account associated with your credit card will affect you before you shut it down. Depending on the situation, closing a credit card account might leave a negative mark on your credit history, something you should avoid at all costs. Choose to keep the accounts that you have had open the longest that make up your credit history.
Should you notice a charge that is fraudulent on any credit card, immediately report it to the credit card company. This way, they will be more likely to discover the culprit. It will also serve to make sure you are not going to be held accountable for any false charges. Most fraudulent charges can be reported with a quick phone call or email to your credit card company.
Inspect the fine print carefully. We have all been pre-approved for one card or another, but it's important to understand all of the specifics about that card before accepting it. Know what the real interest rate is, if it goes up after the first year, and how much time they allow for payment of it. Make sure to find out about grace periods and fees.
By keeping track of all your credit card purchases, will help you from spending more money than you can actually afford. Unless you track your purchases, it's easy to spend way too much.
Make sure that you fully comprehend the terms and conditions of a credit card policy before you start using the card. The first time you use your card is often considered to denote acceptance of the agreement terms. Although some of this agreement may be in fine print, it is very important to thoroughly read all sections.
Do not depend on your credit card to buy things that you truly cannot afford. Credit cards should not be used to buy things that you want, but don't have the money to pay for. Remember that the charge will result in the necessary payment of interest, and it might even result in late fees being added to your account when you cannot afford to make an appropriate payment. Leave before buying anything, think it through and then return if you want to buy it. If you still plan to buy it, the store's in-house financing usually offers lower interest rates.
A lot of people don't get credit cards so it looks like they have no debt. It's important to have, at the very least, one card, so you are able to build your credit. Use your card regularly, and pay the full balance every month. This will help establish credit without building a large balance. Your credit score will improve and you will be looked at as a better risk to lenders.
Track exactly how much you spend each month via your credit card. Keep in mind that impulse and incidental purchases can add up really fast. Use cash or a debit card for these purchases to avoid paying interest fees and overspending on credit cards.
Never lie about how much money you make just so you can apply for a card with an extremely high limit. The limit given to you by your credit card company may be too high if they don't verify your income - this can lead to overspending.
If you regularly use multiple cards, pay one of them off each month. Even if you have a lot of debt on your other cards, having one card paid off each month makes your credit better.
Don't carry more credit cards than you need. Although you may have several cards, think of which cards you will need to carry. These can include a gas card and daily charge cards. By keeping only these regular use cards with you, you are protecting the rest of the cards from unforeseen circumstances.
Try to avoid using cards that have annual fees. Credit cards that don't have annual fees are usually reserved for individuals that have good credit scores. Annual fees can make perks of a card worthless. Do the calculations. Any fees for a card are more than likely typed in fine print. Get your reading glasses out! Make sure any fees do not outweigh the benefits. In most cases they will not.
Credit cards are a great tool if used the right way. The tips offered above can help you use your credit cards in a more responsible way, so that you will have the benefits of credit and not find yourself sinking into debt.