Consumer advice can be a little hard to come by these days, especially in regards to credit cards. The article below discusses some of the best ways to use credit cards and avoid pitfalls. Many people who have bank cards to don’t know how to utilize them correctly, and many wind up in financial straits.
Many card issuers offer signing bonuses when you apply for a card. Make certain you completely understand fine print in the terms and conditions though, because a lot of the credit card companies have very particular terms for you to qualify for before you get the bonus. A common term is the requirement that you make a particular amount of expenditures in a given time frame in order to qualify, so you should be confident that you can meet the conditions before you jump at such an offer.
It is normally a bad idea to apply for a credit card as soon as you become old enough to have one. While doing this is common, it’s a good idea to wait until a certain level of maturity and understanding can be gained. Learn more about adult life and adult responsibilities before getting a credit card, rather than impulsively signing up for a card.
Select a password for your card that’s tough to identify for someone else. Never use your birth date, children’s names, middle name, or anything else that could be figured out easily by someone looking to steal from you.
Write down the card numbers, expiration dates, and customer service numbers associated with your cards. Keep your list in a safe place that is separate from your cards. Such a list is helpful when you need to quickly get in touch with lenders in the event your cards are lost or stolen.
Most professionals say that limits on your bank cards should not be more than 75% of what your salary is 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.
A great tip for any card holder is to get an annual credit report to be sure everything is right. Ensure that your credit report and annual statements match up.
While secured cards can prove beneficial for boosting your credit, don’t use any prepaid cards. This is nothing more than a debit card and won’t affect your credit rating. Lots of these cards charge extra fees too, and they are nothing more than a checking account really. Pay a deposit and get an actual secured card that will help better your credit.
As you can probably see, it is very easy to get yourself deep in financial trouble by charging up credit cards. Carrying a balance, late payments, and big purchases can all get an uneducated credit card user into high debt. Hopefully, you can use what you went over in this article to help you use your credit card more wisely.