Learn How To Use Credit Cards Safely
Is it possible to use credit cards responsibly, or do you feel as though they are only for the fiscally brash? If you believe that it is impossible to use a credit card in a healthy manner, you are mistaken. This article has some great tips on responsible credit usage.
Before you choose a credit card company, be sure that you compare interest rates. There is no standard when it comes to interest rates, even when it is based on your credit. Every company uses a different formula to figure what interest rate to charge. Be sure that you compare rates, to ensure that you get the best deal possible.
Consumers should shop around for credit cards before settling on one. Many different credit cards are available, each offering a different interest rate, annual fee, and some, even offering bonus features. By shopping around, an individual can find one that best meets their needs. They can also get the best deal when it comes to using their credit card.
Do not close any credit card accounts without finding out how it affects your credit report. Depending on the situation, closing a credit card account might leave a negative mark on your credit history, something you should avoid at all costs. Also, keep open all the accounts that make up most of your history.
Immediately report any fraudulent charges on a credit card. By doing this, you will help the card company to catch the person responsible. It's also the most efficient way to limit the liability you face for the incurred charges. If you suspect fraudulent charges, immediately notify the company your credit card is through.
If you are in the market for a secured credit card, it is very important that you pay close attention to the fees that are associated with the account, as well as, whether they report to the major credit bureaus. If they do not report, then it is no use having that specific card.
Remember that you must pay back what you have charged on your credit cards. This is only a loan, and in many cases, it is a high interest loan. Carefully consider your purchases prior to charging them, to be sure that you will have the money to pay them off.
It should be obvious, but many people fail to follow the simple tip of paying your credit card bill on time each month. Late payments can reflect poorly on your credit report, you may also be charged hefty penalty fees, if you don't pay your bill on time.
Keep one low-limit card in your wallet for emergency expenses only. All other cards should be kept at home, to avoid impulse buys that you can't really afford. If you need a card for a large purchase, you will have to knowingly get it from your home and take it with you. This will give you extra time to think about what you are buying.
Don't ever offer anyone the number associated with your credit card, be it via telephone or the web unless you know and trust the company or individual you are speaking with. If you are receiving an unsolicited offer that is requesting a credit card number, be doubly suspicious. There are a variety of scams designed to gather credit card information from unsuspecting consumers. Protect yourself by remaining diligent.
To avoid excessive fees, always read the fine print of any credit card offer you are considering. Many offers come with a low introductory APR and can be quite enticing. However, further review of the fine print may reveal that that low rate will be increased to a less than appealing rate in as little as 6 months or a year.
Never put your credit card details in a fax to someone, ever. Faxes are sometimes not picked up as soon as they are received, which gives many people ample opportunity to get at the information. Your credit card number could very easily be stolen. This opens you up to fraudulent activity and all of the problems that come with it.
Don't forget the things you learned in this article, and you are well on your way to having a healthier financial life which includes responsible credit use. Each of these tips are very useful on their own, but when used in conjunction, you will find your credit health improving significantly.
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