Important Considerations For Anyone Who Uses Credit Cards
Let’s face it, in this day and age, consumers need all the advice they can get on managing their finances and avoiding the pitfalls presented by over-spending! Bank cards can really get you into trouble, although if used correctly they can benefit you greatly. Continue reading for great advice on how to properly use bank cards.
Speak with the credit card company right after you see a charge on your statement that you did not make. When you do that, you will give the credit company a good chance of making sure the thief is caught. By doing this you also are less likely to be held responsible for any transactions made from the thief. Fraudulent charges can usually be reported by making a phone call or sending an email to the credit card company.
When it comes to premium credit cards, find out if an annual fee is involved to make sure that you do not pay too much for the card. Some cards can have fees that go as high as $1000 annually! If you don’t need an exclusive card, keep this in mind and avoid the fees.
Credit Card Company
If you only pay the minimum amount each month on your credit card, only the credit card company benefits. The monthly minimums are deliberately designed to be so low that you will be paying for years in in order to pay off your balance. In the meantime, the credit card company will be collecting inordinate amounts of interest from you. Always pay as much as possible in excess of the minimum payment. Don’t incur expensive interest costs over time.
You want to stay away from both late fees and over the limit ones. Both are expensive fees and exceeding your limit can also hurt your credit score. This is a very good reason to always be careful not to exceed your limit.
The signature strips on the back of your new credit cards should be signed as soon as you receive them. Too many consumers forget this important step, and their credit cards are that much more at risk of theft. At some stores, cashiers will verify your signature on the card against the signature you sign to the receipt as an added security measure.
It is not wise to obtain a credit card the minute you are old enough to do so. Although many people do this, you should take some time to become familiar with the credit industry before getting involved. There are several responsibilities associated with being an adult; having a credit card is only one of them. Get comfortable with financial independence before you obtain your first card.
As stated before, consumers often feel alone in the world of finances, and that can put them at risk for bank cards with high interest rates! Ideally, you have picked up some handy spending advice from this article and have a better idea about how to use your charge cards in a safe and responsible manner.