Although credit cards can be a great financial tool, they can also be a huge frustration for many people. To make your credit card experience more fun and less frustrating, all it takes is the right advice. This article has several suggestions on using your card the best ways possible.
If one card has a lower interest rate, use it to pay off the debt on a different card. Even if interest rates are not appreciably better, some credit cards offer rewards with a value toward vacation travel and hotels. Just be sure that you're doing the math on these rates first.
Anyone who owns a credit card should request a copy of their three credit reports annually. This can be done for free. Make sure that everything in the report matches up and that your credit history is being reported with a great level of accuracy.
Don't lie about your income to get a higher limit credit card. If a company doesn't verify that the information regarding your income is true, you may get that higher limit - and you may rack up charges that you truly cannot afford to repay.
Choosing your credit card first every time is a mistake, even if that card offers cash back rewards and travel points. Charging everything to your card will eventually net you the rewards you are looking for. However, you may also end up with high interest charges.
If you ask an expert, they will recommend that you should not have a credit limit greater than three-quarters of the income you bring in every month If your limit is larger than one month's salary, you need to pay it off as soon as you can. This is due to the fact that the interest you end up paying can really accumulate quickly.
Sometimes limited time offers of interest free accounts can be a bad idea. You may think that you are getting a good deal, when the truth is, you could be making a huge mistake that could cost you even more money.
Make your card payment on time each month. If your payment is late even once, you may find your card company will raise your interest rate. Additionally, credit card issuers will report you late to the credit bureaus, which can significantly impact your credit score. Signing up for automatic online payments will prevent the possibility of late payments.
If you have bad credit, try to get a secured card. A secured credit card require a balance for collateral. In actuality, you simply use your own funds and pay interest in order to hold the card. This may not be an ideal situation, but it might be one of the only ways that will help you repair your credit. When getting a secured credit card you should only deal with companies that are well known. Later, you will be able to get an unsecured card.
Drop your credit card companies a line to notify them in advance if you are going to take an international trip. If the company sees suspicious transaction (such as transactions from other countries) on your credit card, they will lock your card. If you advise your company before hand, you shouldn't have any problems abroad.
When getting a premium card you should verify whether or not there are annual fees attached to it, since they can be pretty pricey. Certain exclusive cards charge annual fees upwards of $1,000. Avoid paying these fees by refraining from signing up for exclusive credit cards if you don't really need them.
If you ever misplace or lose your credit card, remember to call your credit card provider right away. When you do this you save yourself by making your card invalid so no one can use it. Your credit card company will immediately issue you a new credit card and number.
As noted earlier, too often, consumers find themselves frustrated and discouraged after dealing with a credit card company. However, you are more likely to choose the right card and have a positive experience by doing your research ahead of time. Implement what you've learned here, and enjoy using credit wisely.
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