With all of the credit card horror stories out there, it is no wonder that some people are afraid of credit cards. There is no need to fear credit cards. Credit cards are often the perfect way to make purchases that you would not want to make with cash. In the article that follows you can find advice that will help you with credit cards.
Ensure you understand how closing an account will affect your credit score. You should avoid closing an account if it gives you a negative mark. In addition, keep the oldest credit card accounts open because a major factor in your overall credit score is the length of time since credit was established.
Read the fine print. Before accepting any credit card offer ensure you know all the details. It’s important to know what your interest rate is and will be in the future. Additionally, you may wish to know about their fees and any applicable grace periods.
Make timely payments on your credit card accounts to maintain a high credit score. If you don’t do this, you could incur costly fees and harm your credit score. Automatic payments are a great way to avoid late payments on a credit card.
To help ensure you do not over pay for a premium credit card, double check whether the card has an annual fee attached to it. The fees for premium credit cards can range from a small amount to a very large amount depending on how many cards the company issues. If you do not require a card like this, choose a card with lower or no fees.
It is good to keep in mind that credit card companies are not your friends when you look at minimum monthly payments. They set minimum payments in order to maximize the amount of interest you pay them. Always pay above the minimum. Don’t incur expensive interest costs over time.
If you are looking to open a credit card though you do not have any type of established credit, finding someone to co-sign for you can do the trick. This can be a family member or friend with existing credit. They have to understand that they will sign a document stating that if you fail to pay your credit card, they will be responsible for the balance. This is a good way to get a credit card and how you could build your credit.
Before beginning to use a new credit card, you should carefully review the terms stated in the credit card agreement. When you first use a card, you are basically accepting the terms the company offers. The print on the agreement may be small, but it is important to read it carefully.
Those of you looking to get a new credit card should limit their search to cards that have low interest rates and do not have an annual fee. There are a lot of credit cards that have no annual fee, so you should avoid the ones that do.
Don’t write your password or pin number down. It is vital that you know your password, and that you’re the only one who has access related to it. If you write it down on a bill or keep it in your financial files, a thief could easily steal this information.
Just because you made a purchase, does not mean you should immediately pay it off the moment you return home. Instead, pay the balance as soon as you receive the statement. This shows a good payment history and enhances your credit score as well.
Know what recent credit card laws have been created recently. For example, it’s now illegal for a credit card company to retroactively increase rates. Double-cycle billing is something that is also not allowed. If you understand the laws, you can understand your rights as a consumer. Look up federal legislation regarding credit card usage and fraud.
It is important to keep your credit card number safe; therefore, do not give your credit information out online or on the phone unless you completely trust the company. Be extremely suspicious if you receive an unsolicited offer which requests credit information. There are many dishonest people in the world who want your information. Tell them you will call them back to be sure they are legit. Find their number yourself.
Make sure to verify all charges and fees that are associated with a credit card that you are considering, instead of just focusing on the interest rates and the annual percentage rate. Often credit card providers will charge various fees, including application fees, cash advance fees, dormancy fees and annual fees. These fees can make owning the credit card very expensive.
Think about receiving an unsecured line of credit from a credit card company after you have been paying down a secured card reliably. At that time, you’ll see mail offers start coming in. This is the perfect time to re-think your credit cards needs.
Don’t use cards that have annual fees. Most no annual fee credit cards are presented to people with a good credit score. The fees can negate any rewards the card delivers. Think about it. Any fees for a card are more than likely typed in fine print. Make sure you are aware of all the costs associated with using your credit cards. Check if the fees negate the benefits. Your analysis should dictate your decision.
If a credit card of yours is presumably stolen or lost, be sure to report the card to the credit card company right away. You could be held responsible for charges placed on the stolen card before it is reported as missing. You aren’t liable for any unauthorized charges made after you report your credit card lost or stolen.
The credit card advice from this article should help anyone get over their fear of using a credit card. Credit can be very helpful when used in the proper way, so it is unnecessary to fear it. Just use the information you’ve learned here and your fear of credit cards will be a thing of the past.