It is easy to be intimidated by the dangers of acquiring a helpful credit card. However, when used properly, they are a great financial tool. Credit cards are very helpful if you want to buy something and you would prefer not to utilize cash. Read on to find tips and advice for using your credit cards in an educated and beneficial way.
Obtain a copy of your credit score, before you begin applying for a credit card. Credit card companies will determine your interest rate and conditions of credit by using your credit history, among other factors. Checking your credit score before you apply, will allow you to make sure you are getting the best rate possible.
Keep track of how much money you are spending when using a credit card. Small, incidental purchases can add up quickly, and it is important to know how much you have spend on them, so you can understand how much you owe. You can keep track with a check register, spreadsheet program, or even with an online option offered by many credit card companies.
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.
Avoid being the victim of credit card fraud by keeping your credit card safe at all times. Pay special attention to your card when you are using it at a store. Double check to make sure you have returned your card to your wallet or purse, when the purchase is finished.
Consider getting a co-signer if you haven’t yet established credit. A parent, friend, sibling or other trusted person with previously established credit can be a co-signer. They need to be willing to pay for your balance if you cannot pay for it. This method is a smart way to help build your credit with a first credit card.
Only take cash advances from your credit card when you absolutely have to. The finance charges for cash advances are very high, and very difficult to pay off. Only use them for situations in which you have no other option. But you must truly feel that you will be able to make considerable payments on your credit card, soon after.
It is best to stay away from charging holiday gifts and other holiday-related expenditures. If you can’t afford it, either save to buy what you want or just buy less-expensive gifts. Your best friends and relatives will understand that you are on a budget. You can always ask ahead of time for a limit on gift amounts or draw names. The bonus is that you won’t be spending the next year paying for this year’s Christmas!
Look into whether a balance transfer will benefit you. Yes, balance transfers can be very tempting. The rates and deferred interest often offered by credit card companies are typically substantial. But if it is a large sum of money you are considering transferring, then the high interest rate normally tacked onto the back end of the transfer may mean that you actually pay more over time than if you had kept your balance where it was. Do the math before jumping in.
Helpful Credit Card
Carefully read the terms. If there are offers that allow you to be pre-approved for a card or if the person is saying you can be helped to get a card, you have to know the details before signing up. It’s very important to understand what interest rates and payment schedules you’ll be dealing with. Additionally, you may wish to know about their fees and any applicable grace periods.
Remember that you must pay back what you have charged on your credit cards. This is only a loan, and in many cases, it is a high interest loan. Carefully consider your purchases prior to charging them, to be sure that you will have the money to pay them off.
Helpful Credit Cards for students
If you’re a student looking for a helpful credit card, be mindful of the fees and costs of any card you choose to apply for. Frequently, annual fees or penalties are attached to student credit cards and they can be quite costly, so do your homework to locate the credit card that is best for you.
Cash Back Credit Cards
Look out for cash back credit cards. These types of credit cards give you cash back on every purchase that you make with the credit card. Cash back rates can range from 1% to 5%, so over the course of a year, you could actually earn a lot of cash back.
Secured Credit Cards
A lot of banks no longer issue secured credit cards, but it is common to find them being offered through credit unions. If you would like to sign up for a secured credit card, you can open an account with a credit union and take advantage of whatever cards they offer.
Prepaid Credit Cards
Use a credit card in order to save yourself bank hassles and fees. There are credit cards that have no fees as long as they are paid in full monthly, but debit cards have fees all of the time. Many people use prepaid credit cards for direct depositing paychecks and avoiding banks altogether so that they save money.
Types Of helpful Credit Card
Look out for cash back helpful credit cards. These types of credit cards give you cash back on every purchase that you make with the credit card. Cash back rates can range from 1% to 5%, so over the course of a year, you could actually earn a lot of cash back.
The credit card tips in the article above should help to alleviate credit card fears. Credit cards can be extremely useful if you use them properly and understand how to use them without fear. Always remember the good advice you have been given and you will not have any problems.