Consumer advice is valuable with regard to credit cards. The article below has been created to help you figure out how to use your credit cards properly so you don't have any trouble with them. A lot of people now own more credit cards than necessary and this can make spending responsibility more difficult.
Know the credit card laws that have been enacted in recent years. For example, credit card companies can't increase rates on former months. It is also against the law to double-cycle your bill. If you understand the laws, you can understand your rights as a consumer. Check out the CARD Act, as well as a Billing Act called Fair Credit for more information.
Negotiate for a better interest rate, especially if you have been with the company for a long time. You can talk to the company that issues the card and attempt to get a rate that is lower. If you've made your payments regularly and if you have proven that you are a good customer, they could give you a better APR.
Credit card companies set minimum payments in order to make as much money from you as they can. Always make more than your card's minimum payment. By doing this, you will avoid paying high amounts of interest that can really add up in the long run.
Try to avoid credit card providers who charge an annual fee. Generally, cards with no annual fees are given to people who have better credit scores. These fees can wipe out any perks the card offers, though. Take the time to do the calculations. Credit cards don't tout annual fees, as they're regularly found in small fine print. Use a magnifying glass on all those terms if you need one. Check if the fees negate the benefits. Most times they don't.
Think about applying for a cash-back credit card in order to get rewarded each time you shop for groceries or gas. This kind of rewards card is great for everyday expenses. You can even get $60 or more each month back in your pocket, just for buying things you already need! The rewards can help pay for holiday gifts or other irregular expenses. However, you want to be careful you don't keep a balance on the card because the interest rates charged will negate all the rewards.
The highest interest rate credit cards are the ones that should be paid off first. Having a lot of debt on a high interest card means you will be spending a small fortune as well as accumulating serious debt. The best practice is to tackle the debts on cards with high interest first before you apply extra payments to balances with lower rates.
If you are purchasing something at a retail location with a credit card, make sure that you never leave any spaces on the receipt blank. Always fill up the signature line on your credit card tip receipt, so you don't get charged extra. When your monthly statement arrives, compare the charges with your receipts to ensure that everything matches.
Try to remember that your credit cards are a privilege to use, not your right. You get better credit when you're smart with it and get worse credit when you aren't. Smart credit card users will pay on time at the end of the month, and know their balance at all times.
It's a smart practice to have 2 or 3 open credit cards in good standing. If you can pay your bill in full each month, this number of cards will help you to improve your credit score. If you have too many cards open at a time, it may be difficult for you to find a loan, as too many cards on your credit report can be a red flag to lenders.
Check the fine print of credit card offers. If you see 'pre-approved' or someone offers a card 'on the spot', be sure to know what you are getting into prior to making a decision. Always be aware of what your interest rates are, as well as the amount of time you have to pay those rates. Additionally, you may wish to know about their fees and any applicable grace periods.
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 you have seen, it can be all too easy to cause problems for yourself by using credit cards improperly. Having a couple of extra cards and making a few extra purchases can lead to real issues quickly. Use the information you've read here to become a more educated credit user and make smart financial decisions.
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