Everyone knows just how powerful and dangerous that credit cards can be. The temptation of massive and instant gratification is always lurking in your wallet, and it only takes one afternoon of not paying attention to slide down that slope. On the other hand, sound strategies, practiced with regularity, become an effortless habit and can protect you. Read on to learn more about some of these ideas.
Be safe when giving out your credit card information. If you like to order things online with it, then you have to be sure the website is secure. If you notice charges that you didn't make, call the customer service number for the credit card company. They can help deactivate your card and make it unusable, until they mail you a new one with a new account number.
When making purchases with your credit cards you should stick to buying items that you need instead of buying those that you want. Buying luxury items with credit cards is one of the easiest ways to get into debt. If it is something that you can live without you should avoid charging it.
Take advantage of the fact that you can get a free credit report yearly from three separate agencies. Make sure to get all three of them, so that you can be sure there is nothing going on with your credit cards that you may have missed. There may be something reflected on one that was not on the others.
If you have a credit card with high interest you should consider transferring the balance. Many credit card companies offer special rates, including 0% interest, when you transfer your balance to their credit card. Do the math to figure out if this is beneficial to you before you make the decision to transfer balances.
Instead of just blindly applying for cards, hoping for approval, and letting credit card companies decide your terms for you, know what you are in for. One way to effectively do this is, to get a free copy of your credit report. This will help you know a ballpark idea of what cards you might be approved for, and what your terms might look like.
If you are about to start a search for a new credit card, be sure to check your credit record first. Make sure your credit report accurately reflects your debts and obligations. Contact the credit reporting agency to remove old or inaccurate information. A little time spent upfront will net you the best credit limit and lowest interest rates that you may be eligible for.
When looking for a new card, find one that has low interest and fees. There are plenty of cards that don't come with an annual fee, so getting one that does is foolish.
Always know what your utilization ratio is on your credit cards. This is the amount of debt that is on the card versus your credit limit. For instance, if the limit on your card is $500 and you have a balance of $250, you are using 50% of your limit. It is recommended to keep your utilization ratio of around 30%, in order to keep your credit rating good.
If you are having a problem getting a credit card, consider a secured account. A secured credit card will require you to open a savings account before a card is issued. If you ever default on a payment, the money from that account will be used to pay off the card and any late fees. This is a good way to begin establishing credit, so that you have opportunities to get better cards in the future.
Before you get something online with a credit card, be sure that you can trust the seller. Check to see if the company has posted a physical address on the site for their operations. You might also want to call phone numbers listed on the website to verify they are still active.
Try setting up a monthly, automatic payment for your credit cards, in order to avoid late fees. The amount you need for your payment can be automatically withdrawn from your bank account and it will take the worry out of getting your monthly payment in on time. It can also save money on stamps!
The key to using a credit card correctly lies in proper repayment. Every time that you don't repay the balance on a credit card account, your bill increases. This means that a $10 purchase can quickly turn into a $20 purchase all due to interest! Learn how to pay it off every month.
As was mentioned earlier, many folks understand just how problematic credit cards can become with one simple lapse of attention. However, the solution to this is developing sound habits that become automatic protective behaviors. Apply what you have learned from this article, to make habits of protective behaviors that will help you.
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