There are many things that you have to have a credit card to do. Making hotel reservations, booking flights or reserving a rental car, are just a few things that you will need a credit card to do. You must carefully consider the use of a credit card and how much you are using it. Following are a few suggestions to help you.
Report any fraudulent charges on your credit cards right away. By doing this, you will help the card company to catch the person responsible. It also ensures you are not responsible for any charges made on the lost or stolen card. A quick call or simple email may be all that is required for you to report a fraudulent charge.
Exercise some caution before you start the process of applying for a credit card offered by a retail store. If a retail store inquires on your credit, the inquiry will affect your credit score, even if you do not open the card. An excessive amount of inquiries from retail stores on your credit report can actually lower your credit score.
Don’t fall for the introductory rates on credit cards when opening a new one. Be sure to ask the creditor what the rate will go up to after, the introductory rate expires. Sometimes, the APR can go up to 20-30% on some cards, an interest rate you definitely don’t want to be paying once your introductory rate goes away.
When you are looking over all of the rate and fee information for your credit card make sure that you know which ones are permanent and which ones may be part of a promotion. You do not want to make the mistake of going for a card with very low rates and then they balloon shortly after.
Understand what your interest rate will be. This is information that you should know before signing up for any new cards. Without a clear understanding of the interest charges, your bills could rise unexpectedly. If you have to pay a lot of interest, then it may be impossible for you to make your monthly payments.
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.
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!
Knowing these suggestions is just a starting point to learning how to properly manage credit cards and the benefits of having one. You are sure to benefit from taking the time to learn the tips that were given in this article. Read, learn and save on hidden costs and fees.