Credit card purchases can yield perks such as frequent flyer miles or other discounts, if used properly. Other people who don’t use their cards wisely charge their vacation expenses to their credit cards and come home having a stressful bill. Here are some great ways to use your card wisely to get the most benefit from it.
Check the fine print of credit card offers. We have all been pre-approved for one card or another, but it’s important to understand all of the specifics about that card before accepting it. Know the percent of your interest rate, as well as the length of time you will have to pay for it. Remember to check out any grace periods and finance charges involved, too.
Check your balance carefully when your statement arrives. Know what your limit is and how much you’re spending, you don’t want any surprises. Going over that limit may equate to greater fees than you are prepared to pay. This will make it incredibly difficult to repay your balance.
A co-signer is a good way to get your first credit card. You can have a friend, parent, sibling or anyone else that is willing to help you and has an established line of credit. Your co-signer must sign a statement that makes them responsible for the balance if you default on the debt. This is a great way to get your first credit card and begin to build your credit.
There are many charge cards that offer rewards programs for your spending. Look for these highly beneficial loyalty programs that may apply to any credit card you use on a regular basis. This can provide you with additional money, if you use the card wisely.
It is very important to read all correspondence from your credit card company, including emails. If a company has notified you that they will change a policy, they are within their rights to do so. If you don’t like the changes, you have the right to cancel your credit account.
Leave no blank space or room for anyone to write anything when you sign a credit card receipt. If the receipt includes a tip line and you aren’t leaving a tip, draw a line in the tip space. If you do not you take the chance of an employee writing in an amount themselves. Always verify the fact that your purchases agree with what you statement says.
Make a list containing the account numbers of your charge cards and any phone numbers associated with your lenders. Maintain it in a secure place, like a safe, and keep it separated from your cards. Having such a list will enable you to take quick action and have all the information handy, when it is needed.
If you have poor credit, consider getting one of the secured charge cards. These cards require that you first have a savings account established with the company, and that account will serve as collateral. Essentially, you’re borrowing your money and you pay interest on it. Not ideal, but it may be the only way to repair your credit standing. Stick with good companies that have a reputation when you apply for a credit card. They will be in a position to offer you a regular, unsecured credit card in the future, and you can further improve your credit by using it responsibly.
See if your credit card issuer is willing to lower your interest rate. In many cases, companies are willing to lower the interest rates of customers who they have a lengthy and positive relationship with. This can save you hundreds of dollars a year and all it takes is a phone call.
Even cards that do not offer rewards, perks and points applicable to vacations can still be a benefit to your life. Those who aren’t responsible with their bank cards may find themselves in future financial ruin. Use this given advice to put yourself in the right category of users.