Sometimes, it gets tough to go through all the credit offers that show up in the daily mail. Some guarantee approval, others tout their rewards programs, and some boast low interests. How does a consumer choose? The following information will assist you in understanding what you must know about these cards.
Don’t cancel a card before assessing the full credit impact. 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. Choose to keep the accounts that you have had open the longest that make up your credit history.
Many bank cards offer significant bonuses for signing up for a new card. It is important to really understand the specific details buried in the fine print for actually getting the bonus. Some companies, for example, specify that you must charge a minimum amount on your card within a specific time period. Make sure you will truly be able to qualify for such bonuses.
Pay each month’s credit card bill on time. You may have to pay large fees if you ignore the due date on your credit card statement. Also, you run the risk of having your interest rate increased.
Many bank cards come with rewards or loyalty accounts. If spend a lot on your credit cards, using cards with pertinent loyalty programs can be a huge bonus for you. If you use it smartly, it can act like a second income stream.
Those of you who want a new card should keep their searches to those that have no annual fees and interest rates that are low. Choosing a card that has an annual fee attached is a waste of your money when there are numerous credit cards available without one.
Never use a credit card to buy things you can’t afford. Just because a nice new TV sounds like a great idea, a credit card may be the wrong way to get one. Remember that the charge will result in the necessary payment of interest, and it might even result in late fees being added to your account when you cannot afford to make an appropriate payment. Go home and take a day or two to think it over before making your choice. If you still want to purchase it, the store usually has in-house financing that will have lower interest rates.
Don’t put your pin or password to paper, no matter what the circumstances. You need to memorize your password, as this is the only way you can ensure that no one else will find it and use it improperly. If you document your pin number, and keep it with your card, anyone can use it.
Be careful when you make online purchases. Closely scrutinize the companies you are willing to give your personal information to. Call the toll-free or other phone numbers on the website to see if they work, and avoid buying from merchants that do not list an address on their website.
Do not simply believe that the interest rate you are offered is concrete and should stay that way. Just like any other business, credit card companies are in competition with each other and have many interest rates available to them. If your interest rate is high, call your credit company and see if they will change it before you switch to a new card.
Be sure to keep track of credit card spending every month. Keep in mind that impulse and incidental purchases can add up really fast. If you spend without much consideration, you may find that you cannot repay the full balance when the bill arrives.
If you owe more money on your card that you could pay back, you are risking damaging your credit score. If this happens, it could make it hard for you to rent an apartment, get insured, finance a car or even get a job.
Upon closing a credit account, it is imperative that you destroy the associated card. If you choose to put it in a drawer, the card could find itself in another person’s hands, and he or she could use your information to open up your account and charge lots of debt that is in your name.
If you can, stay away from cards that have annual fees. Generally, cards with no annual fees are given to people who have better credit scores. These fees wipe out perks your card would have provided. Check the math. Most companies do not readily show annual fees; instead, they are listed in the small print of the contract. If you need to, use your reading glasses. Weight the fees against the benefits. Often, they do not.
Consumers today receive a mass of credit card offers in the mail everyday, and it can be difficult to sort through them all. With a little bit of research, making the right credit card selection becomes a simplified process. This article has provided some valuable advice that can help consumers to make educated credit card decisions.