Anyone can build credit, while managing their finances, with a credit card. Knowing how to use a card is important because it will allow one to make an educated decision. This article provides crucial information for everyone who wants to make wiser credit card choices.
It is a good practice to have more then one credit card. That will assist you in building up your credit score; this is especially true if you can pay the cards off each month. If you have more than 3 credit cards however, that might not look right to a lender who looks as your credit report.
Whenever you spot anything fraudulent on your monthly credit card statement, call the issuing company right away. This will give the company a greater possibility of catching the perpetrator. This will also limit the risk of you being held accountable for their charges. Most fraudulent charges can be reported with a quick phone call or email to your credit card company.
To help you get the maximum value from your credit card, choose a card which provides rewards based on the amount of money you spend. Many credit card rewards programs will give you up to two percent of your spending back as rewards which can make your purchases much more economical.
Make friends with your credit card issuer. Most major credit card issuers have a Facebook page. They might offer perks for those that “friend” them. They also use the forum to address customer complaints, so it is to your advantage to add your credit card company to your friend list. This applies, even if you don’t like them very much!
Make sure to keep a budget when you are using credit cards. Many people budget their income and cash, and credit spending should be included as well. Never view your credit cards in the wrong way, such as viewing them as some extra spending money. Decide how much you can afford to pay your credit card company, and do not charge more than that amount every month. Don’t go over that amount, and pay the balance off every month.
If you have a credit card with high interest you should consider transferring the balance. Many credit card companies offer special rates, including 0% interest, when you transfer your balance to their credit card. Do the math to figure out if this is beneficial to you before you make the decision to transfer balances.
Sometimes cards are connected to all types of rewards accounts. As long as you are in the habit of paying with a credit card, be sure to find a program which will reward you for using it. Used wisely, they can even provide an extra source of income.
As was mentioned earlier, credit cards can be a great tool for managing finances. Understanding the individual cards is essential though, as this helps individuals to make educated choices. Grasping the fundamental information about credit cards can assist consumers in making smart credit choices, too.