Good credit cards can often be a needed lifeline when there is a financial problem. Do you have to make a purchase, but have no money to make the payment? This is not a problem. Pull our your credit card and you’ll be fine. Are you trying to establish a better credit score? It is easy to do that with a credit card. Continue reading if you wish to know how to use a card correctly.
Many people wonder if it is better to have one credit card or many. For most people, it is best to have two or three credit cards open. Having two or three cards will help you to improve your credit rating. If you have more than 3 credit cards however, that might not look right to a lender who looks as your credit report.
Try to pay off the balance on all charge cards every month. In the ideal credit card situation, they will be paid off entirely in every billing cycle and used simply as conveniences. Your credit score benefits from the credit card use, and you won’t have finance charges if paid in full.
Credit Card
Check over your agreement, and make sure you understand all the terms before using your credit card. The first use of your card is perceived as an acceptance of its terms by most credit card issuers. The fine print may be small; however, you still need to read it all.
If you do not own a locking mailbox, never order bank cards through the mail. Credit card thieves have stated that they steal cards out of unlocked mailboxes.
To save money, don’t hesitate to negotiate a lower interest rate with the company associated with your charge cards. Based on your history with your credit card company and your personal financial history, they may agree to a more favorable interest rate. All you need is one phone call to help you get a better rate.
Never lend your credit card to a family member or friend. You may trust your friend, but it can cause problems. It is never a good idea to let friends use your card. This can lead to your friendship being ruined. Or it can result in over the limit charges should your friend charge more than you authorized.
Never give out a credit card number over the phone if someone else initiates the request. Scammers often employ these shady tactics. Only provide your number to businesses that are trusted and your card company only when you actually call them. If a random company calls you first, don’t share your numbers. Although someone may say they are from a certain company, there is honestly no way to tell if they are being truthful.
Interest Rate
It is possible that your interest rate can be reduced, so do not think that you are stuck with the rate you were given. The industry that runs credit cards are competing all the time, so they always have various interest rates. If you are not happy with your interest rate, call your bank and ask them to change it.
Many experts state the maximum limit for your credit card needs to be less than 75% of your income for each month. If your balances exceed one month’s pay, try to repay them as quickly as possible. This is due to the fact that the interest paid will soon snowball to a point that it’s out of your control.
If your card’s current interest rate does not please you, speak to your bank about lowering it. If they refuse to do this, try looking for cards at a different company. After you find it, transfer your debt to the new card.
Only carry the credit card that you will need that day. While it may be tempting to stuff all of your five or six cards into your wallet, stop and select the cards you actually use on a regular basis. Those are usually the gas card and the daily charge card. By keeping only these regular use cards with you, you are protecting the rest of the cards from unforeseen circumstances.
As you can tell, credit cards may be used for many things. From simple things like making a payment to boosting your credit score, there truly is a myriad of uses. Use the information that was presented to you to get the most out of your credit card usage.