The Do’s & Don’t’s For Credit Card Users – Part 2

Credit Cards 0 9

In last week’s post, we talked about the basic things you need to learn about having a credit card. Read here for more guidelines on how to properly use the credit card.
 
Make sure you investigate all fees and charges instead of simply looking at annual fees and interest rates. Application fees, cash advance fees and service charges are sometimes involved that make having the credit card less worthwhile.
 
You should close any card accounts that are never used. When you leave the account open, it’s much more likely that you’ll wind up falling victim to identity theft. It is also possible to end up with high annual fees for so many cards.
 
You may have a good payment history, and a good credit score, but still be paying a high interest rate on your credit card. Ask your company to lower the interest rate. Sometimes they actually will do this. You can save a lot monthly, now that you’re carrying a balance.
 
Check your credit card statement regularly. Sign up to receive mobile alerts if they are offered by your provider. This allows you to find out about and question suspicious activity immediately. If you notice fraudulent activity on your account, contact the card issuer right away; if you have to, call the police.
 
Have a note placed in a visible area in your home, indicating all the purchases done through your credit card. A note in a visible spot will keep your spending at the front your mind and help you know your financial situation at any given time. Many times, people let themselves get into debt because they do not keep an eye on their purchases.
 
Read all fine print when it comes to balance transfers and credit cards with a low introductory rate. Make sure you understand what will happen after the initial low interest period. In general, after the introductory period has ended, these credit card providers will start to charge you extortionate interest rates and administration fees. Just make sure you know exactly what you will be getting into before you sign up for an offer.
 
Try to remember that your credit cards are a privilege to use, not your right. Stay in control of your financial situation by using credit cards carefully. A responsible consumer will pay their full balance each month as well as track their charges.
 
Large credit card companies have a big selection of cards to choose from. The reason here is that the larger companies usually offer more flexible rates and better benefits. Choose a credit card backed by a well-known company to use as your primary credit card. Never forget that at the end of the day, your credit score and credit history is what’s on the line.
 
As you can see from the above tips and techniques, credit cards offer a myriad of benefits. Whether it is the confidence and peace of mind that comes with knowing you are prepared for an emergency or the rewards and perks that give you a little bonus at the end of the year, credit cards can improve your life in many ways. Use the information you’ve gathered here today for greater success in this area.

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