Some people view credit cards suspiciously, as if these pieces of plastic can magically destroy their finances without their consent. The truth is, however, credit cards are only dangerous if you don’t know how to use them properly. Read on to learn how to protect your credit if you are using credit cards.
If you are in the market for a secured credit card, it is very important that you pay close attention to the fees that are associated with the account, as well as, whether they report to the major credit bureaus. If they do not report, then it is no use having that specific card.
A lot of people do not use their credit cards the right way. Debt is not always avoidable, but many people overcharge, which results in payments that they cannot afford. The very best thing that you can do is pay off the balance every single month. By doing this, you will have a low balance and help your credit score.
Shop around for a card. Interest rates and terms can vary widely. There are also various types of cards. There are secured cards, cards that double as telephone calling cards, cards that let you either charge and pay later or they take out that charge from your account, and cards used only for charging catalog merchandise. Carefully look at the offers and know what you need.
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!
Aim to set up your own budget when dealing with credit cards. You need a budget for the money you make; therefore, your credit should be included in it. Credit cards should not be viewed as “extra” money. Determine how much you can spend monthly on credit cards. Stick to it, and make sure you pay them off every month.
Pay your minimum payment on time each month, to avoid more fees. If you can afford to, pay more than the minimum payment so that you can reduce the interest fees. Just be sure to pay the minimum amount before the due date.
Take the time to play around with numbers. Before you go out and put a pair of fifty dollar shoes on your credit card, sit with a calculator and figure out the interest costs. It may make you second-think the idea of buying those shoes that you think you need.
As you can see, credit cards don’t have any special power to harm your finances, and in fact, using them appropriately can help your credit score. After reading this article, you should have a better idea of how to use credit cards appropriately. If you need a refresher, reread this article to remind yourself of the good credit card habits that you want to develop.