Credit cards represent the best and worst in life. On the one hand, pulling them out of your wallet and sliding them at the store register means you get your hands on what you wanted to buy. On the other hand, you get to curse and swear at the bill that shows up in your mailbox a few weeks later. Read on the find out how to maximize the good while minimizing the bad.
Pay for your credit card on time every month so that you can maintain a high credit score. A late payment can do a number on your credit score, and can also require you to pay pricey fees. Set up auto payments with your creditors to save money and time.
If you need to use credit cards, it is best to use one credit card with a larger balance, than 2, or 3 with lower balances. The more credit cards you own, the lower your credit score will be. Use one card, and pay the payments on time to keep your credit score healthy!
It is important to understand all credit terms before using your card. A lot of credit card places think of your first purchase as your agreement to their terms. The print on the agreement may be small, but it is important to read it carefully.
It may seem unnecessary to many people, but be sure to save receipts for the purchases that you make on your credit card. Take the time each month to be sure that the receipts match up to your credit card statement. It will help you manage your charges, as well as, help you catch unjust charges.
If you ever have a charge on your card that is an error on the credit card company’s behalf, you can get the charges taken off. The way you do this is by sending them the date of the bill and what the charge is. You are protected from these things by the Fair Credit Billing Act.
Some have the mistaken idea that having no credit cards is the best thing they can do for their credit. Actually, having one credit card is generally a good idea, because it helps you build a credit history. Use the card, then pay the balance off every month. If you do not have any credit cards, your credit score will be lowered and you will have a harder time being approved for loans, since lenders will not know able you are to pay off your debts.
To avoid interest charges, don’t treat your credit card as you would an ATM card. Don’t get in the habit of charging every single item that you buy. Doing so, will only pile on charges to your bill, you may get an unpleasant surprise, when you receive that monthly credit card bill.
The credit cards in your life can swing both ways. While they can mean the instant gratification of that new item you wanted at the mall, they can also mean a headache in the mail a month later. This article has provided you with ideas on how to reap your rewards without sweating the downside much. Apply what you have learned to excel at both. For more information on click here: http://www.bestfinanceideas.com