There are many things that you have to have a credit card to do. Making hotel reservations, booking flights or reserving a rental car, are just a few things that you will need a credit card to do. You must carefully consider the use of a credit card and how much you are using it. Following are a few suggestions to help you.
Never close a credit account until you understand how it affects your credit history. Many times closing an account can lower your credit score and will show up negatively on your credit report. Also, maintain cards that have most of your credit history.
Do not lend your credit card to anyone. Credit cards are as valuable as cash, and lending them out can get you into trouble. If you lend them out, the person might overspend, making you responsible for a large bill at the end of the month. Even if the person is worthy of your trust, it is better to keep your credit cards to yourself.
Credit cards are often essential for young people or couples. Even if you don’t feel comfortable holding a large amount of credit, it is important to actually have a credit account and have some activity running through it. Opening and using a credit account helps you to build your credit score.
Do not make purchases with your credit card for things that you can not afford. Credit cards are for things that you purchase regularly or that fit into your budget. Making grandiose purchases with your credit card will make that item cost you a great deal more over time and will put you at risk for default.
Learn how to manage your credit card online. Most credit card companies now have online resources where you can oversee your daily credit actions. These resources give you more power than you have ever had before over your credit, including, knowing very quickly, whether your identity has been compromised.
Do not write down passwords or PINs related to your credit card–ever. The safest place for this information is in your memory, where nobody else can access it. Anyone will be able to access your account if they get hold of your written pin number, especially if it is stored with your card.
If you are called and asked for the number of your credit card, refuse to divulge it. Scammers use this trick all the time. You should give your number only if you call a trusted company first to pay for something. Never give your numbers to people who may call you on the phone. Credit card thieves will say anything to get you to believe their story, and they are very good at it.
If you use credit cards, stay on top of your credit standing by obtaining your credit report once a year so that you are reassured of the accuracy. Make sure that any information on your report syncs with what is on your statements.
Make your credit card payments on time and in full, each and every month. Most credit card companies will charge an expensive late fee if you are even a day late. If you pay your bill 30 days late or more, creditors report this late payment to the credit bureaus.
Do not just assume that the billing statements from your credit card company are accurate. Check each statement for any inaccuracies as well as changes you did not authorize. If you find inaccuracies, tell the credit card company as soon as possible. This will help you reduce the amount you pay and will raise your credit score.
Transferring a credit card balance from a high interest credit card to a card where the rate is less, can save you money every month. Credit card companies offer special introductory rates to attract new business to their credit cards. If you take advantage of one of these offers, make sure that you understand the amount of time that the introductory rate offer lasts.
If you hold several cards, it makes sense to primarily use just one and repay its balance monthly. If you have significant balances on different cards, using one specific card that is paid in full at the end of the month will help to build your credit score.
If your credit card company offers to raise your spending allowance, think carefully before you accept. A higher spending allowance on your cards raises your possible debt to income ratio, and that can harm your credit score. If you do not need the higher spending allowance, ask your creditor to keep your balance where it is, instead.
Knowing these suggestions is just a starting point to learning how to properly manage credit cards and the benefits of having one. You are sure to benefit from taking the time to learn the tips that were given in this article. Read, learn and save on hidden costs and fees.