Many people find credit cards to be frustrating. To make your credit card experience more fun and less frustrating, all it takes is the right advice. The piece that follows includes great ideas for making credit card usage a happier experience.
Each month, take the time to thoroughly go over your statement from your credit card company. Always verify the accuracy of new charges you see on the statement. Call your credit card provider immediately if you see any incorrect totals or charges that you didn’t make. It is always easier to deal with disputes, and resolve them, when they are reported immediately.
Many people mistakenly decide not to get credit cards so it looks like they have no debt. You will never be able to build a good credit report if you do not have at least one open credit account, and a credit card is great way to start building your credit.
Charge things on it, but try to repay the full balance ever month (or at least more than the minimum). If you have no credit at all, it can actually reflect negatively on you and result in a low credit score because potential lenders cannot tell if you can manage your debts or not. A person with no credit looks like a “ghost case” to creditors.
Review all the credit card accounts you have and think about closing those that you do not use. But be advised that if do not have very much credit, then closing down a credit line could lower your credit score (because it lowers your debt to credit ratio, and makes it look like you’re using more of your available credit) – so depending on your situation, it may be more beneficial to just pay off the accounts that you don’t use anymore, but keep them open and store them away in a safe place.
When an old account is closed, people won’t be able to use it fraudulently. You can close accounts you don’t use, even if they carry a balance. You can keep paying the balance until it’s paid in full. But again, weigh things out carefully before you decide to close out a credit account completely.
Make sure to sign your cards as soon as your receive them. A lot of places need a signature so they can match it to your card, which makes it safer to buy things.
When shopping around for a credit card, stick to reputable, well-known companies. More perks usually come with these cards, and the company often has well-defined business practices. If you want the power that major credit cards can provide , you should deal with big credit card companies. Since your credit report is at stake, this is important.
Commit to reduce or eliminate any balances carried on your cards. By doing this, you will improve your financial health, as well as your credit score. Set a budget that allows you to pay a little more than the minimum every month.
Most experts agree that the maximum limit on your credit card should not exceed 75% of your monthly salary. If your limit is higher than this amount, it’s best you pay it off immediately. This is because the interest you are paying will quickly snowball out of control.
As stated previously, credit cards are a constant source of fear and frustration. With the right advice, however, managing your credit cards can be much easier.