When used well, credit cards can mean racking enough perks and points to snag a good vacation, or just a stress-free wallet. There is nothing worse than returning from a well deserved vacation to a large credit card bill awaiting payment. If you would like to be among the first camp, read on for some ideas on how to get the best credit cards and use the ones you have wisely.
A cosigner can help you obtain a credit card if you have yet to establish credit. Co-signers can be siblings, parents, close friends, or anyone with established credit. They must be willing to sign stating they will pay the balance due on the card if you do not pay it. Many have found this to be a great help in beginning the process of building credit.
Think wisely about how you use your credit cards. Keep spending under control and only make credit card purchases you can actually afford to pay for. Before any purchase, make sure you have the money to pay back what you’re going to owe; this is a good mindset to have. If you carry balances, you are more likely to get caught in a cycle of debt that is difficult to escape.
Do not hesitate to ask your creditors if they can give you a lower interest rate. If you have a good credit history with them, they may give you a better rate. A single phone call can get you a better interest rate and help you to save a lot of money.
A lot of experts agree that a credit card’s maximum limit shouldn’t go above 75% of the amount of money you make every month. If your balances exceed one month’s pay, try to repay them as quickly as possible. This happens when the interest builds up it becomes too hard to pay back.
If you have bad credit, try to get a secured card. Cards like these need a collateral. This means that you are borrowing from yourself and then paying interest to do so. This is not perfect, but it might be the best method for fixing your credit. If you are applying for this type of card, remain with a reputable company. As time goes by, you might even find that the company offers you an unsecured credit card.
IF you plan on shopping around for a secured card, don’t use a prepaid one. These are just another form of debit cards and they are not reported for credit purposes. In actuality, these cards are really just high-interest checking accounts that are loaded with extra costs and fees. Apply for a true secured card that reports to the three major bureaus. This will require a deposit, though.
Keep a tally of the amount that your credit card expenses are each month. This will help keep you from impulse purchases that can really add up quickly. If you don’t keep yourself in check as far spending with credit cards, by month’s end you may not be able to handle the bill.
Your credit rating is in real jeopardy if you pile up more credit card debt than you are capable of repaying. Damaging your credit can make it difficult to get insurance, finance a car, rent an apartment or even get a job.
If you are faced with a high APR on your cards, but have been a good customer to the bank, call them and ask for a reduction. In many cases, they will oblige. If you keep a balance on the card, this can help to save quite a bit of money.
Always check your discipline before opening a new credit card. Unfortunately, there are many people who use credit cards to spend beyond their means. Credit cards are a bad idea for these kinds of people. By opening credit card accounts, they open the door to potentially catastrophic financial circumstances.
Keep a running total of your credit card expenditures and post it in a highly visible location. This will help in reminding you of what your total is and you will be aware of what you’re spending your money on. This will help you keep your credit spending under control and you will be helping keep yourself out of a huge debt problem in the future.
Keep a close eye on your credit report to make sure everything is in order. It is also a good idea to be on the lookout for errors on your credit report. Look for errors in your report. If there’s one, contact your credit card company and dispute the mistake to the right authorities.
Request reduced fees and lower interest if you have a late or missed payment. If you have been late with a payment, a credit company is likely to add extra fees and raise interest rates. A call to the credit company can sometimes reduce these extra charges.
Never switch to a different credit card just to take advantage of points offered for airline tickets or other rewards. You may be able to successfully charge everything to a particular card in order to obtain free plane tickets. However, it’s not worth it if you have to pay so much in interest or charge so many things that you could have bought the flight for less.
When you’re traveling, try to have two credit cards on you. Having cards from two different banks will give you more options. If you find that you are having difficulties using one card, and the only thing you have is another from the same lender, you might run into the same problems with the second card. Having access to cards from multiple institutions helps ensure that you will be able to access your credit at all times.
Even cards without rewards, points, and perks that apply to vacations can better your life. If you do not follow this advice regarding correct credit card usage, you may have a lot of stress in your future. Use the advice in this article to make wise choices and avoid financial stress.