Credit Card Advice For Rookies And Pros

Some people fear having charge cards because of potential problems that can occur. There is no need to fear bank cards. Charge cards are great for the times you want to buy something, but desire to not use cash to make the payment. This article will give you plenty of excellent advice about bank cards.

TIP! Just as you want to avoid paying late fees, you want to avoid that over the limit fee as well. Both fees are steep, and going past the limit will affect both your pocketbook and your credit score.

Never use a credit card for purchases that are beyond your means. It’s fine to use credit cards to stretch out the payments for an item you can afford, but refrain from making a major purchase that you couldn’t afford otherwise.

Learn how closing the account associated with your credit card will affect you before you shut it down. You should avoid closing an account if it gives you a negative mark. It is also important to keep your major credit accounts active so that you do not lose a big portion of the credit history that you have built up over the years.

TIP! A co-signer may be an option to consider if you have no established credit. Anyone with established credit can be a co-signer.

Take a look at the fine print. Make sure you understand what you are getting involved in, even if it is a pre-approved card or a company offering help with getting a card. Understand the interest rate you will receive, and how long it will be in effect. You should also learn of grace periods and any fees.

Late Payments

TIP! Set up a budget you can remain with. Even though you have a credit card limit your company has provided you, you shouldn’t max it out.

To keep your credit score high, make sure to pay your credit card payment by the date it is due. Your score is damaged by late payments, and that also usually includes fees that are costly. Automatic payments are a great way to avoid late payments on a credit card.

Know what interest rate your card has. This is especially true before signing up for a new card, so read the fine print or ask the right questions to determine the interest rate you would be paying with the card. Without a clear understanding of the interest charges, your bills could rise unexpectedly. You might not have the ability to pay your debts every month if the charges are too high.

Credit Card Bill

Pay each month’s credit card bill on time. Ignoring the due date on your credit card bill can result in large penalty fees. Also, many creditors will increase your interest rates costing you even more money in the future.

TIP! Do not lie about the amount of money that you make in order to apply for a credit card that has a much higher limit. A lot of companies won’t take a look at your income and they’ll hand out cards with bigger limits.

Do not lend out credit cards under any circumstance. Even if a close friend needs to use one, don’t do it. It can lead to over-limit charges if your friend should put more on the card than you had authorized them to.

If you are making a purchase on the Internet, ensure you are dealing with a legitimate person or company before handing over your credit card details. You should contact whoever runs the site on the phone prior to ordering and don’t use a company that has no real address on their website.

Interest Rates

Your interest rates are not set in stone, and you can do something about getting them lowered. Credit card companies are competitive and can change their interest rates if they wish. If you think your rate is too high, you can often call the issuing bank and request that they change it.

TIP! If you decide to close a credit card account, properly dispose of your card. If you choose to put it in a drawer, the card could find itself in another person’s hands, and he or she could use your information to open up your account and charge lots of debt that is in your name.

The credit card tips in the article above should help to alleviate credit card fears. If you use common financial sense, there is no reason to fear using a credit card for purchases. Just keep in mind the advice in this article and you are going to be just fine.


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