Owning a credit card has many advantages. For example, you can use a credit card to buy goods online. Unfortunately, when you apply for a new credit card, there are a few things that you should always keep in mind. Here are some tips that will make obtaining and using a credit card, easy.
Be sure to limit the number of credit cards you hold. Having too many credit cards with balances can do a lot of harm to your credit. Many people think they would only be given the amount of credit that is based on their earnings, but this is not true.
Be sure that you only use your credit card on a secure server, when making purchases online to keep your credit safe. When you input your credit card information on servers that are not secure, you are allowing any hacker to access your information. To be safe, be sure that the website starts with the “https” in its url.
Know the interest rate you are getting. It’s vital that you know what the interest rate is before signing up for a credit card. If you are unaware, you may end up paying far more than the initial price. If you end up paying more, it is possible that you will be unable to repay the balance every month.
Don’t pay any fees upfront when you are getting a credit card. The legitimate card issuers will not ask for any money up front, unless you’re getting a secured credit card. When you are applying for a secured card, be sure to find out how the deposit is going to be used.
A great way to keep your revolving credit card payments manageable is to shop around for the most advantageous rates. By seeking low interest offers for new cards or negotiating lower rates with your existing card providers, you have the ability to realize substantial savings, each and every year.
Consider getting a co-signer if you wish to open a credit card without established credit. Anyone with established credit can be a co-signer. They are required to state their willingness to assume responsibility for outstanding balances if you fail to pay. This is a great way to get your first credit card and begin to build your credit.
If you are not satisfied with the high interest rate on your credit card, but aren’t interested in transferring the balance somewhere else, try negotiating with the issuing bank. You can sometimes get a lower interest rate if you tell the issuing bank that you are considering transferring your balances to a different credit card that offers low-interest transfers. They may lower your rate in order to keep your business!
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
Take advantage of the freebies offered by your credit card company. Many companies have some sort of cash back or points system that is attached to the card you own. When you use these things, you can receive cash or merchandise, just for using your card. If your card does not offer an incentive like this, call your credit card company and ask if it can be added.
Credit Card Payment
Pay your monthly statements on time. Know what the due date is and open your statements as soon as you get them. If you don’t do this, you could incur costly fees and harm your credit score. Avoid this problem by setting up automatic payments to come out of your bank account on the due date or earlier.
Is your payment due date an actual due date or just a suggested one? A lot of credit card companies now post suggested due dates along with actual due dates. If your issuer uses suggested due dates, it is smart to make sure you know the real due date, should you require a few extra days to get your payment together.
Be certain to make monthly credit card payments on time. Almost all companies charge late fees. As much as $25 could be charged against your account if you are late on making a payment. If you have multiple late payments, the late fee can increase.
If you see late fees added to your card balance, call the card company so they can remove the fee. In response to being a good customer, your fee may be waived.
Schedule automatic payments to your credit card company with your bank. This can help you to ensure that you never miss a credit card payment. Since missing a payment can result in very high fees and raised interest rates, making sure that you make all of your payments in a timely manner, is essential.
Be sure to pay your credit card bills in a timely fashion every month. Even if you are only late once, you can be presented with an increased interest rate, exorbitant fees and a poor credit rating. Attempt to make online payments if possible, so you don’t have to worry that your payment will be lost in the mail.
As previously stated, owning a credit card or two has many advantages. By applying some of the advice contained in the tips featured above, you can be sure that using a credit card doesn’t end up costing you a lot of money. Furthermore, some of the tips could help you to, actually, make some extra money when you use a credit card.