When people think of credit cards, they think of spending dangers and ridiculous interest rates. Having said that, if you use bank cards properly, they can also provide you with certain benefits, such as conveniences, peace of mind, and even certain rewards. Read on to learn how you can use credit cards in a positive manner.
If you see any suspicious charges to your credit card, call your credit card company right away. This way, they will be more likely to discover the culprit. This will help ensure you are not liable for any fraudulent charges against the card. Fraudulent charges could be reported through a phone call or through email to your card provider.
Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. If a retail store inquires on your credit, the inquiry will affect your credit score, even if you do not open the card. If you have many retail inquiries, your credit score may decrease.
Always check the fine print. If you receive a pre-approved card offer, make sure you understand the full picture. Find out the exact interest rate and the time that rate is in effect for your card. You should also ensure you have a complete understanding of any fees as well as grace periods associated with the credit card.
Always make sure there is not a yearly fee attached to any credit card that offers rewards or perks. The annual fee for a platinum or black card could cost from $100, all the way up to $1,000, depending on how exclusive the card is. If you don’t really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
Just like you wish to avoid late fees, be sure to avoid the fee for being over the limit too. Both are costly, but you will pay not only the fees tied to these mistakes, but your credit score will dip as well. Track your spending carefully so that you don’t go over your limit.
If you find yourself dissatisfied with the interest rate on your card, request an adjustment. If your issuer does not agree to a change, start comparison shopping for other cards. When you find a company that fits your needs better, make the switch.
Periodically, you should contact the company that issued your credit card and ask them about a reduction on your interest rates. Some companies are willing to lower interest rates if the customer has had a positive credit history with them. It may save you a lot of money later and it doesn’t cost anything to ask them.
Credit cards can provide many benefits when used in a smart way. Whether its financial flexibility, emergency funds, or accumulating rewards, bank cards can really make your life quite a bit easier. So, take the knowledge you have gained from this article and use it to manage your charge cards sensibly, and responsibly.