When selecting and using a credit card, a bit of consumer advice can come in handy. This article hopes to educate you so you avoid any problems with credit cards. Many people have cards that do not even understand the proper way to use them and this leads to bad debt.
Paying annual fees on a credit card can be a mistake; make sure to understand if your card requires these. Annual fees for premium credit cards can range in the hundred's or thousand's of dollars, depending on the card. If you don't care about exclusivity, these cards aren't for you.
To preserve a high credit score, pay all bills before the due date. Your credit score can suffer if your payments are late, and hefty fees are frequently imposed. It can be very helpful to set up some kind of automatic payment schedule through your bank or credit card company.
Whenever you can manage it, you should pay the full balance on your credit cards every month. Ideally, credit cards are only for convenience and should be paid completely at the end of a billing cycle. Using credit helps the credit score, and when you pay the balance completely you ensure that you avoid finance charges.
Check out the types of loyalty rewards and bonuses that a credit card company is offering. Look for these highly beneficial loyalty programs that may apply to any credit card you use on a regular basis. If used wisely, you can end up with an extra income stream.
Always pay off credit cards on time. Credit card balances must be paid by a certain date. If this does not occur, hefty fees may be imposed. Also, many creditors will increase your interest rates costing you even more money in the future.
Never fax any credit card details to anyone. Faxes are sometimes left unsupervised for long periods of time, and many people may have access to your number. Any one of the workers in the office could steal it. Your credit card could then be used to fund criminal activity or to make unauthorized purchases by the theft.
It happens to almost everyone. Another credit card promotional letter arrives in your mail telling you that you need to apply for a new credit card. Sometimes you may want a new card, sometimes you might not. Don't just throw this mail away, shred or rip it up. Don't toss it without tearing as there may be personal information in the envelope.
Talk to your bank about changing your interest rate if you feel it's too high. If they will not change it even after you talk to the retention team, start searching for a card with a lower interest rate. When you discover one, switch to a company that will serve you better.
Close any credit accounts that you are not using anymore. If you keep them open, identity thieves may be able to steal your identity. It's possible that you might also get charged an annual fees even though the account isn't needed or used.
As you have seen, it can be all too easy to cause problems for yourself by using credit cards improperly. All it takes is too many cards and/or too many costly purchases, and you will find yourself in hot water. This article may be able to help you stay away from credit issues and stay financially healthy.
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