Sunday, 2 September 2012

Simple Credit Card Tips That Help You Manage

By John Miguel


Credit cards can be considered both good and bad. However, credit cards offer peace of mind, perks, and conveniences when properly used. To find the benefits of credit cards, read on for great tips and advice on how they can help.

Only apply for store cards with merchants you shop with often. If a retail store inquires on your credit, the inquiry will affect your credit score, even if you do not open the card. A large number of inquiries that is present on a credit report can decrease your credit score.

Go over your monthly bill very carefully. Make sure the listed charges are accurate, that any credits due have been applied, and watch for unusual or unexpected charges. If you do find a legitimate error, inform your credit card company promptly to dispute a charge or have errors corrected.

If you're thinking of doing a balance transfer, read all of the fine print first. Have a thorough understanding of what will happen at the end of the introductory period. You may find that the interest rates skyrocket and fees begin to accrue when this time frame is reached. So be sure to educate yourself on the credit card terms before signing your name on the application.

It is normally a bad idea to apply for a credit card as soon as you become old enough to have one. Although this might be what most people do, you might need a few months to understand the basics of the credit industry before you use credit cards. Get a little bit of adult experience under your belt before making the leap.

Request an interest rate reduction if you run into financial difficulty. If you are late with your payment, the credit companies can and will raise your rates and tack on extra fees. If you contact the credit card provider, it is often possible to to get a reduction in these charges.

Be aware of the interest rate that you are being charged. You should never sign up for any credit card without knowing the interest rate. You could be charged much more than you originally thought if you are not sure of the rate. You might not be able to pay off your debt if you have to pay more and more interest.

If you are called and asked for the number of your credit card, refuse to divulge it. That is a common trick of scammers. Only provide your number to the businesses that you fully trust and to the card company when you contact them. Never give your numbers to people who may call you on the phone. Regardless of who they say they are, you cannot be sure.

Stop yourself from using credit cards for dining out or for buying groceries, because they may not appear on your statement for quit some time, and you may end underestimating the balance you still have available. You could then overspend, as you will think that your credit card's balance is lower that what it actually is.

Now it is probably clear that credit card usage can help people as they work on building up their credit history and taking control of their money. But before one can properly grasp how to handle dealing with credit, the first step is learning a bit about finances in general, particularly credit cards. Having a good understanding of the basics related to credit cards can help consumers make smart decisions in using their credit cards.




About the Author:



No comments:

Post a Comment