What do you think of when you hear the word credit? If you start to shake or cower in fear because of a bad experience, then this article is perfect for you. It contains many tips related to credit and credit cards, and can help you to break yourself of that fear!
Do not use your credit card to make purchases or everyday items like milk, eggs, gas and chewing gum. Doing this can quickly become a habit and you can end up racking your debts up quite quickly. The best thing to do is to use your debit card and save the credit card for larger purchases.
Don’t cancel a card before assessing the full credit impact. Sometimes closing credit cards can leave negative marks on credit reports and that should be avoided. Choose to keep the accounts that you have had open the longest that make up your credit history.
Report any fraudulent charges on your credit cards right away. The sooner you report it the sooner you give credit card companies and the authorities to catch the thief. It’s also the most efficient way to limit the liability you face for the incurred charges. Most fraudulent charges can be reported with a quick phone call or email to your credit card company.
Be safe when giving out your credit card information. If you like to order things online with it, then you have to be sure the website is secure. If you notice charges that you didn’t make, call the customer service number for the credit card company. They can help deactivate your card and make it unusable, until they mail you a new one with a new account number.
Make sure that you make your payments on time when you have a credit card. The extra fees are where the credit card companies get you. It is very important to make sure you pay on time to avoid those costly fees. This will also reflect positively on your credit report.
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 anyone who trusts you, like a relative or close friend. They will have to accept the responsibility to pay off your debt if you fail to meet your obligations. This is a good way to get a credit card and how you could build your credit.
Carefully read through all the conditions and terms of your card agreement before using the card. When you first use a card, you are basically accepting the terms the company offers. The fine print may be small; however, you still need to read it all.
Pay off as much of your balance as you can each month. The more you owe the credit card company each month, the more you will pay in interest. If you pay even a small amount in addition to the minimum payment each month, you can save yourself a great deal of interest each year.
Anytime you apply for a credit card, you should always familiarize yourself with the terms of service that comes along with it. This will allow you to know what you can and cannot use your card for, as well as, any fees that you might possibly incur in different situations.
How do you feel now? Are you still scared? If so, it is time to continue your credit education. If that fear has passed, pat yourself on the back. You have educated and prepared yourself in a responsible manner.