Tips About Credit Cards: Credit cards can be useful in a lot of ways because they enable people to buy items without them having to pay for them instantly. Be knowledgeable about credit cards before you start using one to avoid financial disaster. The tips in this article will give you some excellent information on good credit practices.
Decide what rewards you would like to receive for using your credit card. There are many options for rewards that are offered by credit card companies to entice you to applying for their card. Some offer miles that can be used to purchase airline tickets. Others give you an annual check. Choose a card that offers a reward that is right for you.
Make friends with your credit card issuer. Most major credit card issuers have a Facebook page. They might offer perks for those that “friend” them. They also use the forum to address customer complaints, so it is to your advantage to add your credit card company to your friend list. This applies, even if you don’t like them very much!
If you are about to start a search for a new credit card, be sure to check your credit record first. Make sure your credit report accurately reflects your debts and obligations. Contact the credit reporting agency to remove old or inaccurate information. A little time spent upfront will net you the best credit limit and lowest interest rates that you may be eligible for.
Keep track of your credit score. The limit to what credit card companies consider good credit is a credit score of 700. Wisely use your credit in order to maintain this level or to reach this level if you aren’t this high yet. When your score is 700 or more, you will receive the best offers at the lowest rates.
Don’t open too many credit card accounts. A single person only needs two or three in his or her name, in order to get a good credit established. More credit cards than this, could actually do more damage than good to your score. Also, having multiple accounts is harder to keep track of and harder to remember to pay on time.
Know your credit history before applying for new cards. The new card’s credit limit and interest rate will depend on how bad or good your credit history is. Avoid any surprises by getting a report on your credit from each of the three credit agencies once a year. You can get it free once per year from AnnualCreditReport.com, a government-sponsored agency.
A great tip for saving on today’s high gas prices is to get a reward card from the grocery store where you do business. These days, many stores have gas stations, as well and offer discounted gas prices, if you sign up to use their customer reward cards. Sometimes, you can save up to twenty cents per gallon.
You should ask the people at your bank if you can have an extra checkbook register, so that you can keep track of all of the purchases that you make with your credit card. Many people lose track and they assume their monthly statements are right and there is a huge chance that there may have been errors.
Try not to close your accounts. Although it could seem like a smart thing to do for improving your credit score, closing accounts could actually harm your score. This is because you are actually subtracting from the total amount of credit you have, which then lowers the ratio between that and what you owe.
Tips About Credit Cards
Do not make purchases with your credit card for things that you can not afford. Credit cards are for things that you purchase regularly or that fit into your budget. Making grandiose purchases with your credit card will make that item cost you a great deal more over time and will put you at risk for default.
Tips About Credit Cards: Make the minimum monthly payment in the very least on all of your credit cards. Not making the minimum payment on time can cost you a great deal of money over time. It can also cause harm to your credit rating. To protect both your expenses, and your credit rating be sure to make minimum payments on time each month.
Student Credit Cards
If you’re a student who is looking for a credit card, be aware of the terms and fees that come with it. It’s not unusual at all for student-based cards to have higher rates and fees. It’s imperative that you research any type of card you’re thinking about getting.
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
Many banks charge fees for using their debit cards, so use credit cards in their place. Certain credit cards do not charge fees if they are paid in full monthly, while debit cards can charge multiple fees. Prepaid cards are being used by millions. With direct deposits from work, they are bypassing the use of banks and avoiding fees.
Types Of Credit Cards
Tips About 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.
Credit cards may be useful, if they’re used properly. The advice given here should enable you to buy things with your card, but still avoid debt and keep good credit.