Keep Charge Cards From Ruining Your Financial Life
Today, consumers need as much advice as possible when it comes to managing finances and avoiding pitfalls caused by overspending. Credit cards can either be an excellent tool for building your financial life or a huge liability that can wreak havoc on your finances. Read on to learn how to properly utilize your charge cards.
Do not bother with retail credit cards unless you have a serious intent to shop at a given store on a regular basis. When a store runs a credit check to see if you qualify for a card, it shows up on your credit report, even if you ultimately decide not to open an account. A lot of inquiries from stores can lower your credit rating.
Bank cards often lure in new users with bonuses and gifts for signing up. Read the terms carefully, however; you may have to meet extremely specific criteria in order to get the signing bonus. Many times, the creditor will require you to charge a particular amount in a set time to receive the bonus.
Credit Card
Be sure to check your credit card’s terms to see if it charges an annual fee to use the card. You want to make sure that you don’t pay a premium for the credit card. The annual fees for platinum and black cards range from one hundred to one thousand dollars, according to how exclusive the card is. Do not get an exclusive card if you don’t need one so you will not have to worry about these fees.
You want to stay away from both late fees and over the limit ones. Both fees are steep, and going past the limit will affect both your pocketbook and your credit score. Track your spending carefully so that you don’t go over your limit.
Be aware of your balance at all times. In addition, you should ensure you know the limit your creditor has provided you. If you pass that limit, you will end up paying more in fees than you know. It will take longer for you to pay the balance down if you keep going over your limit.
Credit Card
Be sure you go over the terms that come with your credit card as carefully as possible prior to using it. A lot of credit card places think of your first purchase as your agreement to their terms. The print might be tiny, but you need to carefully review it.
Make sure to completely understand your credit card terms before signing up with one. Fees and interest rates may be more than you feel is acceptable. Make sure you fully understand things like the interest rate, the late payment fees and any annual charges the card carries.
There are many credit cards that offer rewards programs for your spending. Look for these highly beneficial loyalty programs that may apply to any credit card you use on a regular basis. If used wisely, you can end up with an extra income stream.
As previously said, consumers tend to be alone with their finances and generally fall into very high interest rates because of the card companies! Apply what you’ve just learned here, and be wiser about using your credit cards in the future.