The benefit of a credit card is the ability to buy without making immediate payment. If you want to take advantage of this utility without making financial mistakes, piling up debt, and hurting your credit score, you need to educate yourself on wise credit card usage. The tips in this article will give you some excellent information on good credit practices.
Should you notice a charge that is fraudulent on any credit card, immediately report it to the credit card company. By doing this, you will help the card company to catch the person responsible. It also ensures you are not responsible for any charges made on the lost or stolen card. Credit card companies have an interest in making it easy to report fraud. Usually, it is as quick as a phone call or short email.
Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. Each time a retail store inquires about your credit report, it gets recorded, regardless of whether you actually take the card. An excessive amount of inquiries from retail stores on your credit report can actually lower your credit score.
Ensure you pay your payment by the due date to boost your credit score. If you don’t do this, you could incur costly fees and harm your credit score. You can avoid being late by putting your credit card payments on an automatic schedule.
Make sure you know what your interest rate will be with a given credit card. It is very important to understand what the interest rate is before you get the credit card. Without a clear understanding of the interest charges, your bills could rise unexpectedly. You might not be able to pay off your debt if you have to pay more and more interest.
Be sure to study your credit card terms closely prior to making your first purchase. Most companies think the first time you use their card constitutes accepting their terms. Be aware of all of the “fine print” that comes with your credit card!
Never write down your password or pin number, for any reason. Memorizing your password is the only way to ensure that nobody else is able to access it. If you write down these passwords or pins, you could potentially give someone who you do not want to have access to your accounts an open door to them.
Do not assume the interest rate that you currently receive is the best interest rate available. Credit card companies are in major competition with each other, so different companies will offer different rates to their potential customers. Call your bank if you don’t like your current interest rate. Ask the bank to change your rate.
It is highly recommended that your credit card limits remain less than 75% of the total money you make every month. If the balance you are carrying is greater than one month’s earnings, begin paying it down right away. The interest on several accounts can quickly get out of control.
Check with card companies about whether they’re willing to reduce their rates. If you have built a positive relationship with the company, they may reduce your interest rate. This can really save you a lot of money and it never hurts to ask.
Examine your credit card statement monthly with a fine tooth comb. Try to find anything that doesn’t seem accurate and look for charges you may not have made. Report these inaccuracies to you provider right away. This can help to prevent you from paying too much and it might just save your credit score too.
Charge cards can be helpful, if they are used properly in the right hands. Keeping yourself as debt free as possible and upholding a solid credit score is possible when you apply the tips from this article. When you accomplish this, your cards stay available to make purchases when you need to make them.