What kinds of feelings come to mind when you hear the words “credit cards?” If you are like many other Americans, you probably feel anxious and nervous when you hear these two words put together. This fear and anxiety will pass, however, as soon as you arm yourself with proper information.
If you are unable to make at least the minimum payment on your credit card bill, quit using the credit card right away and contact the credit card company. Let them know when you can make a payment and how much it will be. Follow through and make that payment to avoid further problems.
If you are to lose your job, or fall behind on payments, you are going to want to know ahead of time what your options are. Credit card companies do like to give you this information up front, but it is up to you to take it into consideration. Therefore, think ahead, and pay attention to these details as well.
Keep track of how much you spend with your credit card, so that you know exactly what you should owe when you get the bill. If the bill is much higher than your records, check it carefully to make sure that there aren’t any fraudulent charges on your card. Contact your credit card company immediately, if you discover charges you didn’t authorize.
Use cards that offer you a low interest rate with a balance transfer cautiously. In many cases, that rate is only available for a short period of time. When that time expires, the rate might jump to three or four times that amount. Make sure that you understand the terms and make an educated choice about choosing, and using, these cards.
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.
Don’t apply for a bunch of credit cards at one time. Applying for too much credit at once, makes you look desperate to creditors and can, therefore, harm your credit score. Apply for one credit card and use it sparingly, instead of applying for a lot of credit cards at one time.
In terms of credit cards, it is critical that you do not let your cards go unpaid. Credit reporting agencies will keep track of your failure to pay credit cards on increments of 30 day, 60 day, 90 day and beyond increments. It is extremely hard to recover from having a bad mark like this appear on your credit report.
Before you decide on a new credit card, be careful to read the fine print. Credit card companies have been in business for many years now, and know of ways to make more money at your expense. Be sure to read the contract in full, before signing to be sure that you are not agreeing to something that will harm you in the future.
A great way to save money on credit cards is to spend the time necessary to comparison shop for cards that offer the most advantageous terms. If you have a decent credit history, it is highly likely that you can obtain cards with no annual fee, low interest rates and perhaps, even incentives such as airline miles.
How do you feel about credit cards now? Do you feel more confident on how to use them? If so, then great, but if not, that simply means you need to continue educating yourself. By learning all that you can about credit cards, you will feel better about using them.