Credit Card Tips Everyone Should Know
Having a credit card is of great assistance in many sticky situations. Do you have to purchase an item, but you do not have any cash? That’s not a problem! Pull our your credit card and you’ll be fine. Is good credit something you want? Having a credit card helps with that! Continue reading to find out other ways to make use of a credit card.
If you apply for a store branded credit card, make sure it is a store that you shop at regularly. When you apply for store charge card, an inquiry is noted on your credit bureau report whether you are approved or not. If you have too many inquiries from stores, this can negatively affect your credit score.
Many people misuse their bank cards. Debt is not always avoidable, but many people overcharge, which results in payments that they cannot afford. One of the best things you can do is pay your balances off each month. Your credit score will be improved by paying the balance in full each month.
Be aware of your balance at all times. Make sure you know the amount of your credit card limit. Exceeding your limit can result in significant unexpected fees. Exceeding the limit also means taking more time to pay off your balance, increasing the total interest you pay.
Always read the terms and conditions of your card before using it. Most companies think the first time you use their card constitutes accepting their terms. Be aware of all of the “fine print” that comes with your credit card!
Keep an eye on your credit report and score. A good credit score is considered by credit card companies to be over 700. Strive to maintain or reach that level by using your credit properly. Keeping your score at 700 or better gives you the chance to take advantage of offers for the lowest interest rates.
Interest Rate
Always keep in mind that the introductory interest rate offered to you is not set in stone. Since credit card companies compete with one another, they all have the option of changing your interest rate to another one of their standard rates to keep you satisfied. Call your bank if you are unhappy with the interest rate given to you.
Experts recommend that the limits on your credit cards shouldn’t be any more than 75% of what your monthly salary is. If your limit is higher than this amount, it’s best you pay it off immediately. This is due to the fact that the interest you end up paying can really accumulate quickly.
As seen, bank cards have a lot of different uses and opportunities. From purchasing groceries to simply raising one’s own credit score, it’s evident that there are a range of uses for credit cards. Keep this advice in mind the next time you use your credit card.