1. Understand What Bank Cards Are All About
Charge cards help individuals all around the world to achieve their lifestyle goals. A person has more
flexibility with their finances when they have a credit card. Credit cards do carry some dangers,
however, and it is important to use the financial flexibility they provide wisely. Read tips on that
exact topic in this article.
Ensure you understand how closing an account will affect your credit score. Sometimes, closing an
account can cause your credit score to decrease. Also, keep open all the accounts that make up most
of your history.
Consider getting a co-signer if you haven't yet established credit. A co-signer might be a friend,
parent or sibling who has credit already. They need to be willing to pay for your balance if you
cannot pay for it. That can be a terrific method of acquiring a first card for credit building purposes.
Always read correspondence regarding your bank cards right when it arrives. Credit card companies
can make changes to annual fees, interest rates and membership fees by advising you in writing. If
you don't like the changes, you have the right to cancel your credit account.
If your mailbox is not secure, do not get a credit card by mail. Lots of credit card thieves say that
they have taken cards from people's unlocked mailboxes.
Try calling your credit card provider and asking for a lower rate. If you have a good credit history
with them, they may give you a better rate. It may be as simple as making a phone call to get the
rate that you want.
Before you get something online with a credit card, be sure that you can trust the seller. Call the
company to talk with representatives and never buy from a merchant that does not provide a
physical address.
If you have poor credit, consider getting one of the secured bank cards. These cards require
balances as collateral. Essentially, you're borrowing your money and you pay interest on it. That may
not be perfect, but it can be the only possible way to improve your credit score. Go with a reputable
company when a secured card is applied for. They will be in a position to offer you a regular,
unsecured credit card in the future, and you can further improve your credit by using it responsibly.
2. Refrain from closing your credit accounts. You might think that by doing so you will help your overall
credit score, but you might actually hurt it instead. This is because the ratio of how much you
currently owe is compared to how much total credit you have available.
IF you plan on shopping around for a secured card, don't use a prepaid one. These are considered
debit cards so they don't report to any of the credit bureaus. Lots of these cards charge extra fees
too, and they are nothing more than a checking account really. Choose a secured credit card (which
requires a deposit) instead. The company will report your account to the credit bureaus and benefit
your credit score.
Close card accounts that you don't use. Keeping them open exposes you to fraudulent activity. You
could be charged fees if you are holding a card you don't use.
Try to avoid using cards that have annual fees. Cards with no annual fees are typically reserved for
people with higher credit scores. These fees can wipe out any perks the card offers, though. Sit
down and figure out the math for the long term. These fees are usually not heralded by credit card
companies; they can usually be read in the small print of the terms and conditions. Take the time to
really read the details. Calculate whether the benefits of the card are worth the fees. In many cases,
the fees will not make any benefits worth your while.
There are many great advantages to using bank cards wisely. When they are used the right way,
they can be great assets, but when used without care, the cardholder can find himself in a world of
misery. This article contains valuable advice to help consumers make wise credit card decisions to
enhance their lives and avoid credit pitfalls.
